Net Present Value Use Exhibit 128.1 and Exhibit 126.2 to locate the present value of an annuity of $1, which is the amount to be multiplied times the future annual cash now amount. Each of the following scenarios is independent assume that all cash tows are after-tax cash flows. a. Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits will be $480,000 per year. The system costs $2,150,000 and will last 10 years. b. Even Cardenas is interested in investing in a woman's specialty shop. The cost of the investment is $230,000. She estimates that the return from owning her own shop will be $50,000 per year. She estimates that the shop will have a useful life of 6 years. c. Barker Company calculated the NPV of a project and found it to be $63,900. The project's te was estimated to be years. The required rate or return used for the NPV calculation was 10%. The project was expected to produce annual after-tax cash flows of $135,000 Required: 1. Compute the NPV for Campbell Manufacturing, assuming a discount rate of 12%. If required, round all present value calculations to the nearest dollar. Use the minut lan to indicate negative PV, Should the company buy the new welding system? Yes 2. Conceptual Connection Assuming required rute of return of 8%, calculate the NPV for Ever Cardenas' investment. Round to the nearest dollar. It required, round all present valoe calculations to the nearest dollar Use the minussion to indicate a negative NPV. Should she invest Ves What if the estimated return was $135,000 per year Calculate the new NPV for Evo Cardenas investment. Would this affect the decision? What does this tell you about your analysis Round to the nearest dollar 2. Conceptual Connection: Assuming a required rate of return of 8%, calculate the NPV for Ever Cardenas Investment. Round to the nearest dollar. If required, round present value calculations to the nearest dollar. Use the minus sign to indicate a negative NPV. Should she invest? Yos - What if the estimated retum was $135,000 per year? Calculate the new NPV for Ever Cardenas Investment. Would this affect the decision? What does this tell you about