answer correctly

Use Extibit 12B:1 and Exhibit 12B.2 to locate the present value of an annuity of $1, which is the amouat to be multiplied times the future annual cash flow amount. Each of the following scenarios is independent. Assume that all cash fiows are ofter-tax cash flews: a. Campbeli Manufacturing is considering the purchase of a new welding system. The cash benefts will be $480,000 per year. The 5y stem costs $2,450,000 and will last 10 years, b. Evee Cardenas is interested in lavesting in a women's speciaty shop. The cots of the investment is $330,000. 5 he estimates that the return from owning her onn shop will be $40,000 per year, She estimates that the shop will have a useful life of 6 years. C. Barker Company calculated the NPV of a project and found it to be 563,900 . The project's lle was estirated to be 8 years. The required rate of return used for the NFV calculation was 10%. The project was expected to produce annual after-tax cash fows of $135,000. Required: 1. Compute the Npy for Campbeli Manufacturing, assuming a discount rate of 12%. If required, round all present value calculations to the nearest doitar. Use the minus slan to indicate a negative NPV. Should the company buy the new welding system? 2. Conceptual Connectioni Assuming a required rote of retum of 8%, calculate the NPv for Evee Cardenast investment, Round to the neareat dolar, If repuires, round at present value calculations to the nearest colar. Use the minus sign to indicate a negative NPM. Should she invest? What if the estimated return was 5135,000 per year7 Cakculate the new NDV foe Evee Cardenas' imvestment. Would this afect the decision? What does this tell rou obout your analysks? Hound to the nearest dollar. The shop should nowy = be purchased. This reveost that the decition to accept or reject in this case is affected by diforehces in estimated