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Please answer a and b and c: (1.5 marks) Dieyard Battery Recyclers is considering a project with the following cash flows: Initial outlay = $13,000 Cash flows: Year 1 = $5,000 Year 2 = $3,000 Year 3 = $9,000 1. Compute the NPV of this project. 2. Are you going to accept the project? (1.5 marks) Emar company is considering a project with the following cash flows: Initial outlay = $17,000 Cash flows: Year 1 = $3,000 Year 2 = $6,000 Year 3 = $8,000 Year 4 = 6000 1. Compute the NPV of this project. 2. Are you going to accept the project? (2 marks) Suppose your Al Khaleej plant is in need of a machine. You are considering two different machines that will perform equally well, but have different expected lives. The more expensive one costs $50,000 to buy, requires the payment of $4,000 per year for maintenance and operation expenses, and will last for 5 years. The cheaper model costs only $32,000, requires operating and maintenance costs of $2,500 per year, and lasts for only 3 years. Regardless of which machine you select, you intend to replace it at the end of its life with an identical machine with identical costs and operating performance characteristics. Because there is not a market for used cappers, there will be no salvage value associated with either machine. Let's also assume that the discount rate on both of these machines is 6 percent. Please answer a and b and c: (1.5 marks) Dieyard Battery Recyclers is considering a project with the following cash flows: Initial outlay = $13,000 Cash flows: Year 1 = $5,000 Year 2 = $3,000 Year 3 = $9,000 1. Compute the NPV of this project. 2. Are you going to accept the project? (1.5 marks) Emar company is considering a project with the following cash flows: Initial outlay = $17,000 Cash flows: Year 1 = $3,000 Year 2 = $6,000 Year 3 = $8,000 Year 4 = 6000 1. Compute the NPV of this project. 2. Are you going to accept the project? (2 marks) Suppose your Al Khaleej plant is in need of a machine. You are considering two different machines that will perform equally well, but have different expected lives. The more expensive one costs $50,000 to buy, requires the payment of $4,000 per year for maintenance and operation expenses, and will last for 5 years. The cheaper model costs only $32,000, requires operating and maintenance costs of $2,500 per year, and lasts for only 3 years. Regardless of which machine you select, you intend to replace it at the end of its life with an identical machine with identical costs and operating performance characteristics. Because there is not a market for used cappers, there will be no salvage value associated with either machine. Let's also assume that the discount rate on both of these machines is 6 percent

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