Net Present Value se Exhibit 12B.1 and Exhibit 12B.2 to locate the present value of an annuity of $1, which is the amount to be multiplied times the future annual cash flow amount. Each of the following scenarios is independent. Assume that all cash flows are after-tax cash fiows Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits will be 480,000 per year. The system costs $3,450,000 and will last 10 years. b. Evee Cardenas s interested in investing in omen's specis y shop. The cost of the investment IS S330,000. She est mstes that e return rom owning her own shop will be $35,000 per year. She estimates that he shop w have, usefu re o 6 ears. Company elulated then's Berker Com pany calculated the NPV o a pro ect and found it to be s63,900. The pro ects life as estimated to be 8 years. The equire ate ofreturn used for the N calculation es 10%. The p ect was expected to produce annual after-tax cash flows o s 135,000 Required Compute the NPV for Campbell Manufactur ng, assuming a scount te of 12% f required round all resent value calculations to the nearest dollar Use the minus santo cate a ega ve NPL 12,107.05 X Should the company buy the new welding system? No v 2. Conceptual Connection: Assuming a required rate o retum of 8% ca culete the NP a required rate of or Evee Cardenas nvestment Round to the nearest do ar. required, round all present value calculations to the nearest dollar. Use the minus s gn to indicate negative NPV Should she invest? No v What if the estimated return was $135,000 per year? Calculate the new NPV for Evee Cardenas' investment. Would this affect the decision? What does this tel you about your analysis? Round to the nearest dollar. The shop should now be purchased. This reveals that the decision to accept or reject in this case is affected by differences in estimated cash flow 3. What was the required investment for Barker Company's project? Round to the nearest doller. If required, round all present value calculations to the nearest dollar earest dollar