28) LG expects a demand of 10 000 headphones per year for a special purpose headphone for six years. Net return per unit is $6.10. To produce the headphones, LG must buy equipment costing $200 000 with a life of six years and a salvage value of $10 000 after six years. The company estimates that repair costs will be $8000 per year during Years 2 to 6. Should LG invest in the equipment if it requires a return of 16% on its investment? Calculate the NPV. Yes, NPV = $2679 No, NPV = -86783 Yes, NPV = $6783 No, NPV = $5530 No, NPV = -$2679 Question 4 (1.5 points) 26) The owner of a music store is considering remodeling the store in order to carry a larger inventory. The cost of remodeling and additional inventory is $43 200. The expected increase in net profit is $7000 per year for the next 3 years and $10 000 each year for the following 7 years. After ten years, the owner plans to retire and sell the business, She expects to recover the additional $40 000 invested in inventory but not the $43 200 invested in remodeling Compute the rate of return $ 19,40311 19.403111% 19.403555% 18.403111% 20.403111%