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1) A given project requires a $30,000 investment and is expected to generate end-of-period annual cash infows as follows: Year 1 $12,000 Year 3 S10,000

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1) A given project requires a $30,000 investment and is expected to generate end-of-period annual cash infows as follows: Year 1 $12,000 Year 3 S10,000 Year 2 Total 530,000 $8,000 Assuming a discount rate of 10%, what is the net present value of this investment? 2) A given project requires a $28,000 investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 $12,000 Year 2 $13,000 Year 3 $12,000 Assuming a discount rate of 10%, what is the net present value of this investment? 3) A given project requires a $28,500 investment and is expected to generate end-of-period annual cash inflows of $12,000 for each of three years. Assuming a discount rate of 10%, what is the net present value of this investment? 4) Coffer Co. is analyzing two projects for the future. Assume that only one project can be selected. ost of machine 77,000 $35.000 Year 1 Year 2 Year 3 ear 4 2.000 25 28,000 If the company is using the payback period method and it requires a payback of three years or less, which project should be selected

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