1. The PUBG Corporation is considering an investment that will cost $80,000 and have a useful life of 4 years. During the first 2 years, the net incremental after-tax cash flows are $27,000 per year and for the last two years, they are $22,000 per year. Find the following for this project if the appropriate discount rate is 12%.

1. NPV

2. IRR

3. Payback period

Please show in excel with formulas

2. A company is looking to purchase and replace a fixed asset for $245,000. It will sell the asset that will be replaced for $46,000 but will incur a $20,000 gain upon that sale. It must also commit $30,000 of working-capital to the investment. The firm's tax rate is 35%. What is the amount of the relevant initial investment?

a. $254,000

b. $245,000

c. $206,000

d. $199,000