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White Mountain Industrial is evaluating a 1-year project that would involve an initial investment in equipment of 28,000 dollars and an expected cash flow of

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White Mountain Industrial is evaluating a 1-year project that would involve an initial investment in equipment of 28,000 dollars and an expected cash flow of 29,000 dollars in 1 year. The project has a cost of capital of 2.92 percent and an internal rate of return of 3.57 percent. If White Mountain Industrial were to use 28,000 dollars in cash from its bank account to purchase the equipment, the net present value of the project would be 178 dollars. However, White Mountain Industrial has no cash in its bank account, so using money from its account is not possible. Therefore, the firm would need to borrow money to raise the 28,000 dollars. If White Mountain Industrial were to borrow money to raise the 28,000 dollars, the interest rate on the loan would be 1.79 percent. White Mountain Industrial would receive 28,000 dollars from the bank at the start of the project and would pay 28,501 dollars to the bank in 1 year. What is the NPV of the project if White Mountain Industrial borrows 28,000 to pay for the project? Number Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of equipment for 174,000 dollars today. During year 1, the project is expected to have relevant revenue of 95,000 dollars, relevant costs of 32,000 dollars, and relevant depreciation of 27,000 dollars. Gomi Waste Disposal would need to borrow 174,000 dollars today to pay for the equipment and would need to make an interest payment of 8,000 dollars to the bank in 1 year. Relevant net income for the project in year 1 is expected to be 31,057 dollars. What is the tax rate expected to be in year 1? Answer as a rate in decimal format so that 12.34% would be entered as 1234 and 0.98% would be entered as .0098. Number Silver Sun Banking is evaluating the race track project. During year 1, the race track project is expected to have relevant revenue of 940,800 dollars, relevant variable costs of 224,600 dollars, and relevant depreciation of 72.100 dollars. In addition, Silver Sun Banking would have one source of fixed costs associated with the race track project. Silver Sun Banking just signed a deal with Blue Eagle Marketing to develop an advertising campaign for use in the project. The terms of the deal require Silver Sun Banking to pay Blue Eagle Marketing either 141,200 dollars in 1 year if the project is pursued or 168,900 dollars in 1 year if the project is not pursued. Relevant net income for the race track project in year 1 is expected to be 403,617 dollars. What is the tax rate expected to be in year 17 Answer as a rate in decimal format so that 12.34% would be entered as 1234 and 0.98% would be entered as .0098. Number

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