Need help with #12 and 13

12 Porus, Corp. is considering the purchase of a machine that would cost $180,000 and would last for 5 years. At the end of 5 years, the machine would have a salvage value of $16,000. The machine would reduce costs by $36,000 per year. The company requires a minimum return of 11% on all investment projects. The net present value of the project is closest to: (factors from Exhibit 12B-1 and Exhibit 12B-2 for an interest rate of 11% are provided below): (01:13:09 Periods Present Value of $1 Present Value of an Annuity of $1 0.901 1.713 2.444 3.102 3.696 0.901 0.812 0.731 0.659 0.593 3 0 0 $(68292) 0 $(37456) 0 $15840 13 Scoth Corp is contemplating purchasing equipment that would increase sales revenues by $306,000 per year and cash operating expenses by $100,000 per year. The equipment would cost $600,000 and have a 5 year life with a $70,000 salvage value. The annual depreciation would be $120,000. Assuming the company's discount rate is 15%, the net present value of the investment is closest to the factors below for a 15% discount rate can be used to solve this problem): 8 01:13:02 Periods Present Value of $1 0.870 0.756 0.658 0.572 0.497 Present Value of an Annuity of $1 0.870 1.626 2.283 2.855 3.352 Multiple Choice O $276000 O $125508 O $(106392) o $64500