Che Park Co. is considering an investment that requires immediate payment of $21705 and provides expected cash inflows of $6,700 annually for four years Assume Park Co requires a 7% return on its investments. QS 24-2 Net present value LO P3 1-a. What is the net present value of this investment? PV of $1. FV of $1. PVA of $1. and EVA of $1 (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) 1-b. Based on NPV alone should Park Co. invest? Complete this question by entering your answers in the tabs below. Required 1A Required 1B What is the net present value of this investment? Select Chart Amount X PV Factor Cash Flow Annual cash flow Present Value 0 Net present value Renuired 18 Exercise 24-9 Computing net present value LOP3 B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $384.000 with a 6-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 153,600 units of the equipment's product each year. The expected annual income related to this equipment follows $ 240,000 Sales Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (30%) Net Income 84.000 64,000 24,000 172,000 68,000 20,400 47,620 5 If at least an 9% return on this investment must be earned, compute the net present value of this investment. (PV of $1 FV of $1. PVA of $1. and FVA of $11 (Use appropriate factor(s) from the tables provided.) Answer is complete but not entirely correct. Chart Values are Based on: 6 8 X % = Income taxes (307) Net income $ 47,600 If at least an 9% return on this investment must be earned, compute the net present value of this investment. (PV of $1. EL of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided.) Answer is complete but not entirely correct. Chart Values are Based on: 6 8 X Amount X PV Factor Present Value Select Chart Present Value of an Annuity of $ 111,600 X 4.6229 = $ 515 916 1 $ Present value of cash inflows Present value of cash outflows 515,916 (384,000) 131,916 $ Net present value