1. Madison Company is analyzing a potential investment using the following data: a. Cost of Asset: $150,000 b. Annual Cash Flow: $20,000 c. Discount (Hurdle) Rate: 11% d. Salvage Value: $5,000 e. Estimated Life: 6 years Present Value of Cash Outflow: Present Value of Cash Inflows: Net Present Value Results: 2. Lucy Company is considering purchasing new equipment. The cost of the equipment is $225,000. The salvage value of the equipment is $25,000 and the estimated life is 8 years. The annual Net Income from the equipment is expected to be $40,000. The discount rate (cost of capital) is 10% Present Value of Cash Outflow: Present Value of Cash Inflows: Net Present Value Results: 3. Maddie Company has the following information: i. Cost of new asset: $400,000 ii. Annual Net Income: $42,000 Expected Life: 10 years iv. Salvage value of the new asset: $20,000 V. Discount Rate (minimum required return): 14% Present Value of Cash Outflow: Present Value of Cash Inflows: Net Present Value Results: