2. Find the NPV of an investment with a current cost of $1.3 million. The cash inflows will be an annuity of $80,000 every six months for the next 20 years, beginning 6 months from now. The appropriate discount rate is 12%. Is this a good investment? A. -$63,125; No B. $85,963; Yes C. -$96,289; No D. $55,445; Yes 3. Heritage Inc. has the option to buy a widget machine. The initial investment required today is $240,000. The machine is expected to generate revenues of $65,000 each year for the next 5 years, at which time it can be sold for $20,000 after-tax. If the firm's hurdle rate is 15%, what is the NPV? What is the PI? What is the IRR? What is the MIRR? What is the payback period? NPV PI IRR MIRR Payback Period A. -$12,166 B. -$10,855 C. $12,166 102 D. -$12,166 95 91 12.91 11.51 12.91 12.91 13.81 12.81 16.81 13.81 3.69 years 3.69 years 433 years 4.33 years 95