2.

Mattice Corporation is considering investing $640,000 in a project. The life of the project would be 6 years. The project would require additional working capital of $24,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $158,000. The salvage value of the assets used in the project would be $34,000. The company uses a discount rate of 18%. (lgnore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using the tables provided Required: Compute the net present value of the project. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.) Net present value Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $240,000 and would have a fifteen-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $38,000 per year to operate and maintain, but would save $77,000 per year in labor and other costs. The old machine can be sold now for scrap for $24,000. The simple rate of return on the new machine is closest to (Ignore income taxes.): Crowl Corporation is investigating automating a process by purchasing a machine for $797,400 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $135,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $21,600. The annual depreciation on the new machine would be $88,600. The simple rate of return on the investment is closest to (lgnore income taxes.)