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Can I please get some help? Thank you. 1. Exhibit 8-3 Yale Inc. has two independent investment opportunities, each requiring an initial investment of $260,000.

Can I please get some help? Thank you.

1. Exhibit 8-3 Yale Inc. has two independent investment opportunities, each requiring an initial investment of $260,000. The company's required rate of return is 10 percent. The cash inflows for each investment are provided below.

Investment A Investment B
Year 1 $140,000 $20,000
Year 2 100,000 40,000
Year 3 60,000 60,000
Year 4 40,000 80,000
Year 5 20,000 160,000
Total inflows $360,000 $360,000

Factors: Present Value of $1 Factors: Present Value of an Annuity
(r = 10%) (r = 10%)
Year 0 1.0000
Year 1 0.9091 Year 1 0.9091
Year 2 0.8264 Year 2 1.7355
Year 3 0.7513 Year 3 2.4869
Year 4 0.6830 Year 4 3.1699
Year 5 0.6209 Year 5 3.7908

Refer to Exhibit 8-3. Calculate the net present value for each investment. Should the company invest in both projects?

A) There is not enough information to answer this question.

B) Yes, they should invest in both projects since both have positive net present values.

C) The company should only invest in Investment A, since it is the only project that has a positive net present value.

D) None of the answer choices is correct.

E) No, they should not invest in either project since both have negative net present values.

2. Exhibit 8-1 A project requires an initial investment of $1,500,000 and will return $420,000 each year for six years.

Factors: Present Value of an Annuity
(r = 10%)
Year 1 0.9091
Year 2 1.7355
Year 3 2.4869
Year 4 3.1699
Year 5 3.7908
Year 6 4.3553

Refer to Exhibit 8-1. If taxes are ignored and the required rate of return is 10%, what is the project's net present value (rounded to the nearest dollar)?

A) $1,262,910

B) None of the answer choices is correct.

C) $329,226

D) $1,020,000

E) $344,409

3. Exhibit 8-2 Liam Company has two independent investment opportunities, each requiring an initial investment of $130,000. The company's required rate of return is 12 percent. The cash inflows for each investment are provided below.

Investment A Investment B
Year 1 $70,000 $ 10,000
Year 2 50,000 30,000
Year 3 30,000 50,000
Year 4 10,000 70,000
Total inflows $160,000 $160,000

Factors: Present Value of $1 Factors: Present Value of an Annuity
(r = 12%) (r = 12%)
Year 0 1.0000
Year 1 0.8929 Year 1 0.8929
Year 2 0.7972 Year 2 1.6901
Year 3 0.7118 Year 3 2.4018
Year 4 0.6355 Year 4 3.0373

Refer to Exhibit 8-2. What is the net present value of Investment B (rounded to the nearest dollar) ?

A) $17,080

B) None of the answer choices is correct.

C) $30,000

D) ($15,600)

E) ($17,080)

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