Check 7 Assume that a company is considering purchasing a machine for $50,000 that will have a five-year useful life and a $5,000 salvage value. The machine will lower operating costs by $17,000 per year and its depreciation expense will be $9,000 per year. The company's required rate of return is 18%. What is the net present value of this investment? 1 points Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Skipped Multiple Choice eBook $3,159 Print References $(22,799) O O O $(3,159) O $5,344 00 Which of the following four options is true? 1 points Choices Option 1 Option 2 Option 3 Option 4 Yes Does Consider Does the Time Value Consider of Money Cash Flows No Yes No Yes No No Yes Capital Budgeting Method Payback method Net present value method Internal rate of return method Simple rate of return eBook Print Multiple Choice References Option 1 O O Option 2 Option 3 O Option 4 10 Assume that a company is considering a capital investment project with a four-year time horizon and the following cash flows: points Cost of new equipment Working capital required Annual net cash inflows Maintenance and repairs in third year Salvage value of equipment in fourth year $ 210,000 $ 50,000 $ 100,000 $ 40,000 $ 30,000 Skipped Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. eBook The working capital will be released at the end of the project and the company's required rate of return is 20%. The net present value of the project is closest to: Print Multiple Choice References O $24.100. $14,200. O $19,900). $40,100. O 11 Assume that an investment provides the following cash inflows over a three-year period: 1 points Year 1 Year 2 $ 4,000 5,000 7,000 $ 16,000 Year 3 Skipped Total Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. eBook Assuming a discount rate of 16%, what is the present value of these cash inflows? Print Multiple Choice References O $11,650 O $10,850 $9.950 O $11,250 O