1. Crane Corp. management is planning to spend $650,000 on a new marketing campaign. They believe that this action will result in additional cash flows of $339,000 each year for three years. If the discount rate is 17.5 percent, what is the NPV on this project? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.)

The NPV is

$enter the NPV in dollars rounded to 0 decimal places

2. Sandhill, Inc. management is considering purchasing a new machine at a cost of $4,240,000. They expect this equipment to produce cash flows of $813,290, $870,450, $909,130, $1,115,400, $1,276,860, and $1,223,300 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.)

The NPV is

$enter the NPV in dollars rounded to 0 decimal places

3. Oriole Incorporated management is considering investing in two alternative production systems. The systems are mutually exclusive, and the cost of the new equipment and the resulting cash flows are shown in the accompanying table. The firm uses a 8 percent discount rate for production system projects.

Year			System 1			System 2
0			-$16,000			-$44,000
1			16,000			30,600
2			16,000			30,600
3			16,000			30,600

Calculate NPV. (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round answers to 2 decimal places, e.g. 15.25.)

NPV of System 1 is $enter the NPV of System 1 in dollars rounded to 2 decimal places

NPV of System 2 is $enter the NPV of System 2 in dollars rounded to 2 decimal places