Case Information: ABC Manufacturing has set a hurdle rate of 15% for any new investment opportunities. ABC is analyzing three investment opportunities. Analyze the investment opportunity and answer questions a-c below.

Option A is the investment of $450,000 in a new machine that will result in cash flow stream of $30,000; $75,000, $82,000; $45,000; and $395,000 in years 1 through 5 respectively (The year five cash flow includes the proceeds from the sale of the machine).

Option B is the investment of $27,500 in an annuity that will provide cash flows of $10,000 per year for five years.

Option C is the investment of $500,000 in a new product line that will provide profits of $150,000 in year 1; $145,000 in year 2; $175,000 in year 3; $225,000 in year 4; and $125,000 in year 5.

Complete the chart below using the information from the case.

Calculate the Present Value

Assuming I've entered the data correctly?

Please help with PV values