26. The following data pertain to an investment in equipment:

Investment in the project $10,000

Annual net cash inflows $2,400

Working capital required $5,000

Salvage value of the equipment $1,000

Life of the project 8 Years

At the completion of the project, the working capital will be released for use elsewhere. Compute the net present value of the project, using a discount rate of 10%:

A) -$1,729

B) $606

C) $1,729

D) $8,271

27. The Cheese Company currently sells 250,000 pounds of cheese per week for $6.00 per pound. The management wants to lower the price to $5.00 per pound. The company has a variable cost of $2.00 per pound and weekly fixed costs of $50,500. How many pounds per week will the Cheese Company have to sell at the proposed $5.00 price per pound to maintain the current weekly profit (choose the closest answer)?
    1. 300,000
    2. 250,000
    3. 333,334
    4. 312,213