Exam Practice Problems - Sawad Lee Miller - X Comments Review View Help Die Wrap Text Merge & Center - Search General $ - % Share 4 # E Normal Bad AutoSave GH a 2 .8 ; File Home insert Draw Page Layout Formulas Data Calibri 1 -X === > - Format Painter BIU. . . A. === Clipboard Font 318 x Bo AutoSum - 47 0 - - *** Neutral Ideas Clear Conditional Formal as Good Formatting Table Styles Insert Delete Format . . . Cells Sort Find Filter Select Alignment Number Editing Ideas A B C D E F G H I F | 1 Problem 5 3 Net Present Value 5 A company has a decision to make between two investment alternatives. The company requires a 10% return on investment. 6 Predicted data is provided below: 8 Investment A Investment Z 9 Projected after-tax net income $40,000 S42,000 10 Investment costs $600,000 $675,000 11 Estimated life 6 years 6 years 12 13 The present value of an annuity for 6 years at 10% is 4.3553. This company uses straight-line depreciation 14 15 Required: 16 (a) Calculate the net present value for each investment. 17 (b) Which investment should this company select? Explain. 18 19 - Start >> Problem 1 Prablem 2 Problem 3 Problem 4 Problem 5 6 Display Settings - + 100% Type here to search A 40 4/28/2020