A.) Pena Company is considering an investment of $27,000 that provides net cash flows of $9,000 annually for four years. (a) If Pena Company requires a 10% return on its investments, what is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment?

Based on net present value, should Pena Company make this investment?

B.) Quail Company is considering buying a food truck that will yield net cash inflows of $10,000 per year for seven years. The truck costs $50,000 and has an estimated $6,000 salvage value at the end of the seventh year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) What is the net present value of this investment assuming a required 10% return?

What is the net present value of this investment? Net Cash Flows PV Factor = Present Value of Net Cash Flows Years 1-4 = $ 0 = Net present value = Net Cash Flows PV Factor Present Value of Net Cash Flows Years 1-7 $ 0 = = = 0 Totals II Net present value