5) Northern Stores is a retailer in the upper Midwest. The most recent Northern Stores is given below monthly income statement for Total Store 11 Store 1 $2,100,000 $1,300,000 $800,000 Sales.. Contribution margin.. 840,000 418,000 422,000 Traceable fxed expenses4200 Segment margin 187,000 233,000 420,000 Common fixed expenses. Net operating income (23,000) 93.000 Northern is considering closing Store I. If Store I is closed, one-fourth of its traceable fixed expenses would continue. Also, the closing of store I would result in a 20% decrease in sales in Store II. Northern allocates common fixed expenses on the basis of sales dollars and none these costs would be saved if a store were shut down. Required: Compute the overall increase or decrease in the net operating income of Northern Stores if Store I is closed. efficiencies, thereby reducing annual cash operating costs (before taxes) by $80,000 for each of the next five years. The company's estimated weighted-average cost of capital (WACC) is 8%. The machine will be depreciated using straight-line method over a five-year life with no salvage value. Fritz is subject to a combined 40% income tax rate. 6) Kravitz Company is planning to acquire a $250,000 machine to improve manufacturing Required: 1. What is the estimated net present value (NPV) of the proposed investment