1)

Project A costs $4,500 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 12% as the discount rate?Round your present value factor to three decimal places and final answer to the nearest dollar.

2)

Julio Company is considering the purchase of a new bubble packaging machine. If the machine will provide $18,000 annual savings for 11 years and can be sold for $44,000 at the end of the period, what is the present value of the machine investment at a 10% interest rate with savings realized at year-end?Round your present value factor to three decimal places and final answer to the nearest dollar.

3)Falkland, Inc., is considering the purchase of a patent that has a cost of $51,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 8%. The patent is expected to generate the following amounts of annual income and cash flows:

Year 1 Year 2 Year 3 Year 4

Net income $5,100 $6,500 $6,300 $3,000O

operating cash flows1 7,000 18,550 18,350 14,650

A.What is the NPV of the investment?Round your present value factor to three decimal places and final answer to the nearest dollar.

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4) There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $36,000 and is expected to generate the following cash flows:

First Year Second YearThird YearTotal

Alpha Project $32,000$22,000$4,500$58,50

A.If the discount rate is 12%, compute the NPV of each project.Round your present value factor to three decimal places and final answer to answer to 2 decimal places.

Alpha Project$

Beta Project