1. Assume that the before-tax required rate of return for Deer Valley is 14%. Co

1. Assume that the before-tax required rate of return for Deer Valley is 14%. Compute the before-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment. Show calculations to support your answer.2. Assume that the after-tax required rate of return for Deer Valley is 8% the income tax rate is 40% and the MACRS recovery period is 10 years. Compute the after-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment. Show calculations to support your answer.3. What subjective factors would affect the investment decision?