Q1) What types of risks are inherent in a project? Where do they originate? Can they be mitigated? Explain how. What are the consequences of ignoring a conflict within a project team?
Q2) Your firm purchased machinery with a 7-year MACRS life for $10 million. The project, however, will end after 5 year. If the equipment can be sold for $4.5 million at the completion of the project, and your firm's tax rate is 35 percent, what is the after-tax cash flow from the sale of machinery?