3. Martell Products Inc. can purchase a new copier that will save $4,000 per year in copying costs. The copier will last for twelve years and have no salvage value.

Required:
1-a.	What is the maximum purchase price that Martell Products should be willing to pay for the copier if the companys required rate of return is eight percent? (Round final answer to the nearest dollar amount.)

1-b.	What is the maximum purchase price that Martell Products should be willing to pay for the copier if the companys required rate of return is twelve percent? (Round final answer to the nearest dollar amount.)

4. Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $18,000 for 800 shares of Malti Companys common stock. She received a $560 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $20,000. Kathy would like to earn a return of at least 10% on all of her investments. She is not sure whether the Malti Company stock provided a 10% return and would like some help with the necessary computations.

Required:

1. Compute the net present value that Kathy earned on her investment in Malti Company stock.

2. Did the Malti Company stock provide a 10% return?

2 Annual cash inflows from two competing investment opportunities are given below. Each investment opportunity will require the same initial investment. 1.27 points Year 1 Year 2 Year 3 Year 4 Investment Investment Y $ 2,000 $ 5,000 3,000 4.000 4,000 3,000 5,000 2,000 eBook References Total $14,000 $14,000 Required: Compute the present value of the cash inflows for each investment using a 12% discount rate. (Round final answers to the nearest dollar amount.) Present Value of Cash Flows . Investment X Investment Y $