NAME: Preues Present Value of an Annuity of1 8% 926 1333 1.783 2673 2577 3465 3312 $300,000 Periods % 1 943 14 % % 6 909 12% 893 10% Less operating costs 917 S77 1690 1647 2402 2322 3.037 2914 $169,000 1.736 2531 2486 3240 3.170 Rent 1759 15,000 Insurance 4 46,000 Depreciation 20.000 250,000 Maintenance 5.650 5216 6.418 6.145 7.360 6,710 10 $ 50,000 Net operating income 4. A company has estimated the annual revenues and expenses for a project it is considering (listed above) that will cost a total of $500,000, have a ten-year useful life, and has a salvage value of $40,000. The company requires a payback period of 5 years or less. Show your computations for each question below a) Using the information above, what is the expected annual cash flow for this company? Would the company consider this project? b) What is the payback period? c) What is the internal rate of return to the nearest percent? HINT: For this answer, there are no further computations since you already have the payback period You need to find the answer in the PV table above.. d) What is the simple rate of return promised by the project? If the company requires a simple rate of return of at least 10% , will the games be purchased? 5. ZZZ Corporation has provided the following data concening an investment project that it is considering $ 520,000 Initial investment $50,000 S 210,000 per year S 20,000 3 years 10% Working capital requirement at the beginning Annual cash flow Salvage value at the end of the project Expected life of the project Discount rate .751 826 909 The present value of $1 factors at 10% for year 1, year 2, and year 3 are: The working capital would be released for use elsewhere at the end of the project te b) la it a positive or negative number? a) What is the net present value of the project