A company is considering a $166,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

	Year 1	Year 2	Year 3	Year 4	Year 5
Net Cash Flow	$10,000	$28,000	$55,000	$42,000	$111,000

(a) Compute the net present value of this investment. (b) Should the machinery be purchased?

Gonzalez Company is considering two new projects with the following net cash flows. The companys required rate of return on investments is 10%. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

Year	Net Cash Flows
	Project 1	Project 2
Initial investment	$(44,000)	$(76,000)
1.	11,000	35,000
2.	31,800	20,000
3.	20,000	28,000

a. Compute payback period for each project. Based on payback period, which project is preferred? b. Compute net present value for each project. Based on net present value, which project is preferred?

Required A Required B Compute the net present value of this investment. (Round your pre to the nearest whole dollar.) Year Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value Net Cash Flows $ 0 Present Value Factor Present Value of Net Cash Flows $ $ 0 0 Required A Required B Compute payback period for each project. Based on payback period, which project is prefe outflows must be entered with a minus sign. Do not round your intermediate calculations. to 2 decimal places.) Year Initial investment Year 1 Year 2 Year 3 Project 1 Net Cash Flows $ (44,000) Payback period Project 1 Payback period Project 2 Payback period Based on payback period, which project is preferred? Cumulative Net Cash Flows Required A 0 0 Project 2 Net Cash Flows $ (76,000) years years Cumulative Net Cash Flows Required B 0 0 Required A Required B Compute net present value for each project. Based on net present value, whic value factor to 4 decimals. Round your final answers to the nearest whole dol Net Cash Flows $ Project 1 Year 1 Year 2 Year 3 Totals Initial investment Net present value Project 2 Year 1 Year 2 Year 3 Totals Initial investment Net present value Based on net present value, which project is preferred? 0 Present Value Factor 0 Present Value of Net Cash Flows $ $ $ 0 0 0 0