2.

Julio Company is considering the purchase of a new bubble packaging machine. If the machine will provide $21,000 annual savings for 10 years and can be sold for $52,000 at the end of the period, what is the present value of the machine investment at a 12% 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.

How much must be invested now to receive $29,000 for 8 years if the first $29,000 is received one year from now and the rate is 10%? Round your present value factor to three decimal places and final answer to the nearest dollar.

$............?

4.

Project A costs $4,500 and will generate annual after-tax net cash inflows of $1,900 for five years. What is the NPV using 8% as the discount rate? Round your present value factor to three decimal places and final answer to the nearest dollar.

$..........?

5.

Consolidated Aluminum is considering the purchase of a new machine that will cost $316,004 and provide the following cash flows over the next five years: $80,000, $87,000, $75,000, $80,000, and $72,000. Calculate the IRR for this piece of equipment using the IRR spreadsheet function.

............? %

6.

Towson Industries is considering an investment of $171,300 that is expected to generate returns of $60,000 per year for each of the next four years. What is the investments internal rate of return?

..................?%