o. (Ignore income taxes in this problem.) The discount rate is 16%. Your sidering an investment project that will require an initial investment of sl generate the following net cash inflows in each of the initial investment of $9,400 and will five years of its useful life: Corporation is le Year 1 Year 2 Year 3 Year 4 Year 5 lows. $1,000 $2,000 $4,000 $6,000 $5,000 The net present value for this investment project is closest to A) $(832) B) $1,204 C 1,376 D) S2,386 11. (Ignore income taxes in this problem.) Your Company is considering an investment in a project that will have a two-year life. The project will provide a of return, and is expected to have a $40,000 cash inflow the first year and a S50,000 in the second year. What investment is required in the project? 10% internal rate cash inflow A) $74,340 B) $77,660 C) $81,810 D) $90,000 (Ignore income taxes in this problem.) Your Company has a printing press that needs a $20,000 overhaul. This will extend the useful life of the press by 8 years. As an alternative, Your Company could buy a brand new modern press for $45,000. The new press would also last 8 years. The annu The annual operating expenses of the new press will only be $7,000. The old press is not expected to have a salvage value in 8 years. The new press is expected to have a $6,000 salvage value in 8 years. Your Company discount rate is 14%. The net present value of the decision to buy the new press instead of overhauling the old press is closest to: 12. al operating expenses of the old press are $12,000. B) $(301) C) 4,195 D) (46,089) A) $301 Your Company manufactures a wooden bowl that is part of an elaborate party set. Which of the following would be relevant in the decision to make the bowls or buy them from an outside supplier? 13. Fixed overhead cost that can be eliminated if the bowls are purchased from the outside supplier The variable selling cost of the unit Yes Yes Yes A) B) C) D) Yes 0 0