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a Wonderful Day Company is evaluating a capital investment opportunity. This project would require an initial investment of 530,000 to purchase equipment. The equipm residual value at the end of as life of $5,000. The useful life of the equipment is 6 years. The new project is expected to generate additional net cash inflows of $17.000 of the spears. The company's required rate of return is 14% The net present value of this project is closest to Present Value of $1 Periods 10% 12% 14% 16% 0.751 0712 0.675 0.641 0.683 0.636 0.592 0.552 5 0.621 0.567 0.519 0.476 6 0564 0.507 0.456 0.410 3 4 Present Value of Annuity of S1 Periods 10% 407 12% 14% 16% HAC O A $2,543 B. $54,713 OC, 536,113 OD. $38,393 capital investment opportunity. This project would require an initial investment of 530,000 to purchase equipment. The equipment will have a 100 The useful life of the equipment is 6 years. The new project is expected to generate additional net cash inflows of $17.000 per year for each rate of return is 14%. The net present value of this project is closest to: 12% 0.712 0.636 0.567 0.507 14% 0.675 0.592 0.519 0.456 16% 0.641 0.552 0.476 0.410 12% an 14% 7392 16% AC 3 4 5 6 0.751 0.683 0.621 0.564 0.712 0.636 0.567 0.507 0.675 0.592 0.519 0.456 0.641 0.552 0.476 0.410 Present Value of Annuity of S1 Periods 10% 3 2.487 4 3.170 5 3.791 6 4.355 12% 2.402 3.037 3.605 4.111 14% 2.322 2.914 3.433 3.889 16% 2.246 2.798 3.274 3.685 198 m. O A. $2,543 OB. $54.713 OC. $36,113 OD. $38,393 Pantheon Company is purchasing a new equipment that will require an investment of $135,000. The equipment is estimated to generate cash inflow= second year, and 515.000 each year thereafter for ten more years. What is the payback period? O A 8 years OB. 6.8 years OC. 8.75 years D. 833 years at will require an investment of $135,000. The equipment is estimated to generate cash inflows of $25,000 the first year, $20,000 the more years. What is the payback period? ho 4 Freedom Company is considering the purchase of a machine that would cost $24.388 and would have a useful life of 6 years. The machine would generate 55,600 of net annual inflows per year for each of the 6 years of its life. The internal rate of return on the machine would be closest to Present Value of 51 Periods 8% 10% 12% 14% 0.735 0.683 0.536 0.592 5 0.681 0.621 0567 0519 6 0.630 0.564 0.507 0.456 7 0.583 0.513 0.452 0.400 8 0.540 0.467 0404 0 351 9 0.500 0.424 0.361 0.308 10 0.463 0.386 0322 0.270 O A6% OB 8% C. 12% D. 10% se of a machine that would cost 524,388 and would have a useful life of 6 years. The machine would generate 55,600 of net annual cash ife. The internal rate of return on the machine would be closest to 12% 0.636 0.567 0.507 0.452 0.404 0.361 0.322 14% 0.592 0.519 0.456 0.400 0.351 0.308 0.270 Present Value of Annuity of $1 Periods 8% 4 3.312 5 3.993 6 4.623 5 206 8 5.747 9 6.247 10 6.710 10% 3.170 3.791 4.355 4.868 5.335 5.759 6.145 12% 3.037 3.605 4.111 4.564 4.968 5.328 5.650 14% 2.914 3.433 3.889 4.288 4.639 4.946 5.216 ME O A. 6% B. 8%