2 Required information Part 1 of 2 7.69 points eBook Hint Print Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] Park Co. is considering an investment that requires immediate payment of $28,065 and provides expected cash inflows of $8,100 annually for four years. If Park Co. requires a 5% return on its investments. QS 25-2 Net present value LO P3 1-a. What is the net present value of this investment? (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) Cash Flow Annual cash flow Select Chart Amount x PV Factor Present Value Present Value of an Annuity of 1 Immediate cash outflows $8,100 x 3.5460= 28,723 28,065 Net present value Cost of goods sold was 80% variable and 20% fixed; operating expenses were 75% variable and 25% fixed. In September, Reno Company receives a special order for 15,000 toasters at 7.60 each from Company B. Acceptance of the order would result in an additional 4,000 of shipping costs but no increase in fixed operating expenses. Required: a) Prepare an incremental analysis for the special order and state whether the company should accept it. b) Would your answer change if the order was for 20,000 units? Show computations. (40%) (40%) c) Briefly discuss the possible qualitative factors you would take into consideration before making a final decision on whether to accept or reject the order. (20%). Question 3 Reno Company manufactures toaster ovens. For the first 8 months of 2020, the company reported the following operating results while operating at 95% of plant capacity: Sales revenue (361.000 units) Cost of goods sold Gross profit Operating expenses Net income 4,512,500 2,346,500 2,166,000 866,400 1,299.600