15. Travolta, Inc. recently invested in an asset with a 3-year useful life. The net present value was $9,054 and net annual cash flows were $21,000 for years I through year 3. The original investment cost of the asset, assuming a 18% minimum desired rate of return, was (use the following table) PV of an Annuity Payments of 1 at 18% 1 0.848 2 1.566 3 2.174 a. $45,654. b. $54,708. e. $38,943. d. $36,600. 16. The present value index a. provides a present value factor used to determine net present value (NPV). b. is calculated by dividing the net present value of the investment by the amount to be invested. c. is calculated by dividing the total present value of net cash flows by the amount to be invested. d. can never have a value that is less than 1. 17. A product is expected to generate annual sales of 2,500 units at $60 each. Cost per unit to manufacture the product is $42.00 including $8.40 per unit for (non-cash) factory depreciation. What is the net annual cash flow from the manufacture and sale of the product? a. $84,000 b. $105,000 c. $45,000 d. $66,000