1) A machine costs $200,000 to purchase and will provide $50,000 a year in benefits. Company ABC plans to use the machine for 12 years and then will sell the machine for scrap, receiving $10,000. Company ABC's interest rate is 12%. Should the machine be purchased? 2) The assistant to the regional manager, Dwigt, has been assigned to decide if the following project should be executed. The project has a first cost of $14,000, annual benefits of $2,400 cach period, and a salvage value of $3,000 at the end of its 10- year useful life. What is the net present value of net present worth at an interest rate of 12%? 3) Michael G. Scott is offered the following investment for the company he works for. Interest rate is 8% per year. Given the cash flows in the table below. Determine the net present worth or net present value (NPV) of this project. Should Michael select this project? Why or why not? Year o Cash Flow -10000 40000 1200 1600 2000 4) Bob Vance is evaluating if he should buy new refrigeration equipment. The interest rate is 15% and in each case the equipment's useful life is 4 years. Using NPW (NPV) analysis to determine option should be selected, which alternative should Bob pursue if only one can be selected? Which alternatives should be select if two alternatives can be chosen? Explain. Alterative B O&M Cost 00 $1,600 $400 $9 Cost $15,000 $25,000 520.000 58.000 $13,000 SI Annual Benefit 1.000 Salvage Value $4,500 $3,000 $6,000