D Question 52 12 pts XYZ Manufacturing Corporation wants to purchase new equipment for its plant to streamline production. Information regarding the purchase price and net cash inflows for three possible pieces of equipment that XYZ can purchase are shown below. Assume that the required rate of return and the discount rates are both 6% and XYZ uses straight-line depreciation. The present value tables are presented at the end of the problem. Option A Option B Option C Initial Investment $ 340,000 $ 300,000 $ 280,000 Net Cash Inflows Year 1 $ 83,000 Year 2 $ 76,000 Year 3 $ 79,000 $85,000 per $66,000 per year for 4 year for 5 years years Year 4 $ 90,000 1 AAA NIV Wasich option should the Company select? 6%. The selected option provides an IRR (Choices: greater than, less than, equal to) Present Value of a Present Value of an $1 Annuity of $1 Period 6% Period 6% 1 0.943 1 0.943 gon 2 1.833 D Question 52 12 pts XYZ Manufacturing Corporation wants to purchase new equipment for its plant to streamline production. Information regarding the purchase price and net cash inflows for three possible pieces of equipment that XYZ can purchase are shown below. Assume that the required rate of return and the discount rates are both 6% and XYZ uses straight-line depreciation. The present value tables are presented at the end of the problem. Option A Option B Option C Initial Investment $ 340,000 $ 300,000 $ 280,000 Net Cash Inflows Year 1 $ 83,000 Year 2 $ 76,000 Year 3 $ 79,000 $85,000 per $66,000 per year for 4 year for 5 years years Year 4 $ 90,000 1 AAA NIV Wasich option should the Company select? 6%. The selected option provides an IRR (Choices: greater than, less than, equal to) Present Value of a Present Value of an $1 Annuity of $1 Period 6% Period 6% 1 0.943 1 0.943 gon 2 1.833