Please complete all blank questions. Thanks.

You are the CFO of a business and have the opportunity to evaluate two different investment opportunities. Information related to these investments follows: Investment Cost Salvage Value Useful Life Required Rate of Return Sales Variable Costs Fixed Costs (excluding depreciation) Tax Rate Investment 1 $ 800,000 $ 40,000 8 years 10% $ 450,000 $ 150,000 Investment 2 $ 500,000 $ 50,000 15 years 10% $ 400,000 $ 175,000 $ 100,000 35% $ 150,000 35% Your company has a required rate of return of 10% for all new investments and is sub to a tax rate of 35%. 1 Investment 1 Investment 2 2 3 Net Present Value 4 5 Based on NPV only, which investment is better (Link to List 6 Below)? Investment 1 7 8 9 Investment Choices: Select from this list: 10 Investment 1 11 Investment 2 12 Investment 1 Investment 2 What interest rate (Link to list below)? Based on IRR only, which investment is better (Link to List Below)? Investment 1 Investment Choices - Select from this list: Investment 1 Investment 2 Calculate NET PRESENT VALUE FOR INVESTMENT #1 ONLY Assuming the following Required Rates of Return 6% 12% 20% Net Present Value The LOWER the required interest rate, the the Net Present Value (Link to List Below). higher The HIGHER the required interest rate, the the Net Present Value (Link to List Below) lower 3 5 5 Fill in the Blank - Select from this list: higher lower