1- You are evaluating a capital project with a Net Investment of$400,000, which includes an increase in net working capital of$16,000. The project has a life of 12 years with an expectedsalvage value of $3,000. The project will be depreciated viasimplified straight-line depreciation. Revenues are expected toincrease by $90,000 per year and operating expenses by $8,000 peryear. The firm's marginal tax rate is 40 percent and the cost ofcapital for this project is 15%. What is the net present value ofthis project? Round to the nearest penny. Do not include a dollarsign.

2-XYZ Company is considering whether a project requiring thepurchase of new equipment is worth investing. The cost of a newmachine is $340,000 including shipping and installation. Theproject will increase annual revenues by $400,000 and annual costsby $100,000. The machine will be depreciated via straight-linedepreciation for three years to a salvage value of
$40,000. If the firm does this project, $30,000 in net workingcapital will be required, which will be fully recaptured at the endof the project. The estimated salvage value of the machine afterthe project is $30,000. What is the terminal value of this projectif the tax rate is 40%? Round to the nearest penny. Do not includea dollar sign in your answer.