(Ignore income taxes in this problem. ) Dumora Corporation is considering an investment project that will require an initial investment of $9,400 and will generate the following net cash inflows in each of the five years of its useful life: Year 1 Year 2 Year 3 Year 4 Year 5 Net cash inflows. . . . . S1?000 $2,000 S4?000 $6,000 $5,000 Dumora's discount rate is 16%. Dumora's net present value for this investment project is closest to: $1,204 $(832) $1,376 $2,386 (Ignore income taxes in this problem. ) Morrel University has a small shuttle bus that is in poor mechanical condition. The bus can be either overhauled now or replaced with a new shuttle bus. The following data have been gathered concerning these two alternatives: The University could continue to use the present bus for the next seven years. Whether the present bus is used or a new bus is purchased, the bus would be traded in for another bus at the end of seven years. The University uses a discount rate of 12% and the total cost approach to net present value analysis in evaluating its investment decisions. If the new bus is purchased, the present value of the annual cash operating costs associated with this alternative is (rounded off to the nearest hundred dollars): $(54,800) $(42,800) $(16,200) $(36,500) (Ignore income taxes in this problem. ) Nevus Tattoo Parlor is considering a capital budgeting project. This project will initially require a $25,000 investment in equipment and a $3,000 working capital investment. The useful life of this project is 5 years with an expected salvage value of zero on the equipment. The working capital will be released at the end of the 5 years. The new system is expected to generate net cash inflows of $9,000 per year in each of the 5 years. Nevus' discount rate is 14%. The net present value of this project is closest to: $3,383 $5,897 $(3,088) $4,454