1. Solve each of these independent cases (assume all cash flows are cash flows after tax) a. Thomas Company invested $ 120,000 in a project that would provide a uniform amount of cash inflow for the next 4 years. If the internal rate of return is 14 percent, what is the expected annual cash inflow? b. Video Repair has decided to invest in some new electronic equipment. The fixtures will have a life cycle of three years and will result in cash savings. The net present value of the supplies is $ 1,750 using an 8 percent discount rate. The internal rate of return is 12 percent. Determine the investment and the amount of cash savings realized each year! c. A new lathe that costs $ 60,096 will result in savings of $ 12,000 per year. How many years would the lathe have to last if the 18 percent IRR was realized? d. The NPV of a project is $ 3,927. the project has a life cycle of four years and generates the following cash flows Year 1 $ 10,000 Year 2 $ 12,000 Year 3 $ 15,000 Year 4? The project cost is twice the cash flow generated in Year 4. The discount rate is 10 percent. Compute Project costs and cash flow for Year 4

1. Solve each of these independent cases (assume all cash flows are cash flows after tax) a. Thomas Company invested $ 120,000 in a project that would provide a uniform amount of cash inflow for the next 4 years. If the internal rate of return is 14 percent, what is the expected annual cash inflow? b. Video Repair has decided to invest in some new electronic equipment. The fixtures will have a life cycle of three years and will result in cash savings. The net present value of the supplies is $ 1,750 using an 8 percent discount rate. The internal rate of return is 12 percent. Determine the investment and the amount of cash savings realized each year! c. A new lathe that costs $ 60,096 will result in savings of $ 12,000 per year. How many years would the lathe have to last if the 18 percent IRR was realized? d. The NPV of a project is $ 3,927. the project has a life cycle of four years and generates the following cash flows Year 1 $ 10,000 Year 2 $ 12,000 Year 3 $ 15,000 Year 4? The project cost is twice the cash flow generated in Year 4. The discount rate is 10 percent. Compute Project costs and cash flow for Year 4