XYZ is considering a project that would last for 3 years and have a cost of capital of 22.60 percent. The relevant level of net working capital for the project is expected to be $1,501.80 immediately (at year 0); $4,730.00 in 1 year; $14,800.00 in 2 years; and $0.00 in 3 years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the following table. The tax rate is 45.30 percent. What is the net present value of this project? Year o Year 1 Year 2 Year 3 Revenue $ 0.00 $10,700.00 $11,500.00 $10,100.00 Costs $ 0.00 $3,760.00 $3,670.00 $4,200.00 Depreciation $ 0.00 $2,430.00 $1,970.00 $1,900.00 Cash flows from capital spending $-7,390.00 $ 730.00 $ 270.00 $4,150.00 O $6852.75 (plus or minus $10) O $2489.86 (plus or minus $10) O $8096.12 (plus or minus $10) O S-1833.90 (plus or minus $10) O None of the above is within $10 of the correct answer QUESTION 2 XYZ is evaluating the Reno project. The project would require an initial investment of $124,000 that would be depreciated to $15,300 over 6 years using straight-line depreciation. The project is expected to have operating cash flows of $46,500 per year forever. XYZ expects the project to have an after-tax terminal value of $325,000 in 3 years. The tax rate is 30%. What is (X+Y)/Z if X is the project's relevant expected cash flow in year 3, Y is the project's relevant expected cash flow in year 4, and Z is the project's relevant expected cash flow in year 2? O A number less than 7.49 or a rate greater than 15.20 O A number equal to or greater than 13.41 but less than 15.20 O A number equal to or greater than 7.49 but less than 9.49 O A number equal to or greater than 11.75 but less than 13.41 O A number equal to or greater than 9.49 but less than 11.75