1) Given the following two alternative investments which would you prefer using the NPV evaluation technique and 10% discount rate? Consider a 5 year investment period. Initial investment Life Annual benefit Salvage value (at year 5) Alternative 1 $10,000 5 $3000 0 Alternative 2 $15,000 8 $4500 $2000 2) You have been asked to decide on a method of inspection of parts. There are two methods. One includes manual labor and the other includes an automated process. The Manual labor costs the company $30,000/year. The automated machinery costs $100,000 initially and $5000/year in maintenance. The Machinery will last for 7 years. Using pretax analysis and 8% interest rate, which is preferred? 3) what is the payback for the following cashflow? Year 0 1 2 3 4 5 6 7 8 Cashflow -2500 1000 800 600 400 200 100 200 400 4) what is the discounted payback for the cashflow in problem number 3? use 8% interest