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only answer questions b, c, and the scenarios please! Case Information: ABC Manufacturing has set a hurdle rate of 15% for any new investment opportunities.

only answer questions b, c, and the scenarios please! image text in transcribed
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Case Information: ABC Manufacturing has set a hurdle rate of 15% for any new investment opportunities. ABC is analyzing three investment opportunities. Analyze the investment opportunity and answer questions a-c below. Option A is the investment of $450,000 in a new machine that will result in cash flow stream of $30,000; $75,000,$82,000;$45,000; and $395,000 in years 1 through 5 respectively (The year five cash flow includes the proceeds from the sale of the machine). Option B is the investment of $27,500 in an annuity that will provide cash flows of $10,000 per year for five years. Option C is the investment of $500,000 in a new product line that will provide profits of $150,000 in year 1; $145,000 in year 2; $175,000 in year 3; $225,000 in year 4 ; and $125,000 in year 5 . a. Complete the chart below using the information from the case. - Calculate the Present Value (PV) and Net Present Value (NPV) for each of the options Include the formulas and show your work for each of the options to make an investment decision. (Only put the answers in the table below.) - Calculate the IRR for each of the options using the Excel spreadshect and insert the b. Which options should ABC not consider? Why? Answer: c. Which option do you recommend? Why? Answer: PV and NPV calculations: Show your work below. (This will allow me to give partial credit) Scenario 1: Scenario 2: Scenario 3

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