1. A company is considering a 5-year project to open a new product line A new machine with an installed cost of $100,000 would be required to manufacture their new product, which is estimated to produce sales of $90,000 in new revenues each year The cost of goods sold to produce these sales (not including depreciation) is estimated at 43% of sales, and the tax rate at this firm is 39% lf straight-line depreciation is used to calculate annual depreciation, what is the estimated annual operating cash flow from this project each year? (Answer to the nearest dollar)

2. A company is considering a 6-year project that requires an initial outlay of $25,000. The project engineer has estimated that the operating cash flows will be $3,000 in year 1, $6,000 in year 2, $7,000 in year 3, $7,000 in year 4, $7,000 in year 5, and $8,000 in year 6 At the end of the project, the equipment will be fully depreciated, classified as 5-year property under MACRS The project engineer believes the equipment can be sold for $5,000 at the end of the project. If the tax rate is 27% and the required rate of return is 13%, what is the net present value (NPV) of this project? (Answer to the nearest dollar)