Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,800 and will produce cash flows as follows: End of Year Investment $ 8,800 $ 0 8,800 8,800 26,400 2 To The present value factors of $1 each year at 15% are: Hem 0.8696 0.7561 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment B is: Multiple Choice o $1,558. o $(17,358). o $10,600. o $6,970. o $43,758. A company is considering the purchase of new equipment for $96,000. The projected annual net cash flows are $37,700. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 8% return on investment. The present value of an annuity of $1 for various periods follows: Period Present value of an annuity of $1 at 8% 0.9259 1.7833 2.5771 What is the net present value of this machine assuming all cash flows occur at year-end? Multiple Choice $94,580 $1,157 $32,000 $4,700 $36,700