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of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. d Manufacturing is considering the purchase of a new welding

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of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. d Manufacturing is considering the purchase of a new welding system. The cash benefits will be $400,000 per year. The system costs $1,650,000 and will last 10 years. b. Kaylin Day is interested in investing in a women's specialty shop. The cost of the investment is $330,000. 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. Goates Company calculated the NPV of a project and found it to be $21,300. The project's life was estimated to be 8 years. The to produce annual after-tax cash flows of required rate of return used for the NPV calculation was 10%. The project was expected $45,000 Required: 1. Compute to the nearest dollar. Use the minus sign to indicate a negative NPV. the NPV for Southward Manufacturing, assuming a discount rate of 12%. If required, round all present value calculations Should the company buy the new welding system? 2. Conceptual Connection: Assuming a required rate of return of 8%, calculate the NPV for ka nearest dollar. If required, round all present value calculations to the nearest dollar. Use the minus sign to indicate a negative NPV lin Day's investment. Round to the Should she invest? if the estimated return was s45,000 per year? Calculate the new NPV for Kaylin Day's investment. Round to the nearest dollar

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