Net Present Value Use Exh 128.1 and Exhibit 128.2 to locate the present value of an annuity of $1, which is the amount to be multiple times the future annual cash flow amount Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. a. Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits will be 5480,000 per year. The system costs $2,050,000 and will last 10 years b. Eve Cardenas is interested in Westing in a women's specialty shop. The cost of the investment is $280,000. She estimates that the return from owing her own shop will be $50,000 per year. She estimates that the shop will have a useful life of 6 years Berker Company calculated the NPV of a project and found it to be 563,900. The propers te was estimated to be 3 years. The required rate of return used for the NPV calculation was 10%. The project was expected to produce annual tax cash flows of $135,000. Required: 1. Compute the NPV for Campbell Manufacturing, assuming a discount rate of 128. It required, round al present value calculations to the nearest delar. Use the minus won to indicate negativen Should the company buy the new welding system? Yes 2. Conceptul Connection. Asuming required rain of retum of 8%, calculate the rev for Ever Cardenas Investment, Hound to the nearest detar. It required, round we present value calculations to the nearest dollar. Use the minus sign to indicate a negative NPV. Should she invest? What if the estimated return was $135,000 per year? Calculate the new NPV for Eve Cardenas investment. Would this affect the decision what does this tell you about your ? Round to the nearest der The shop be purchased. This reveals that the decision to accept or reject in the affected by differences inestimated 2. What was the required investment for Barker Company's project Round to the nearest doar it required, round presente care to the best delle