Please explain #7

Page 2 of 15ZOOM 2 7. Respass Corporation has provided the following data concerning an investment project that it is considering: Initial investment Annual cash flow Salvage value at the end of the project Expected life of the project Discount rate The net present value of the project is closest to: A) $67,000 B) $160,516 C) $516 D) S(5,776) $ 160,000 S 54,000 per year S 11,000 4 years 15% 8. Moates Corporation has provided the following data concerning an investment project that it is considering Initial investment Annual cash flow Expected life of the project Discount rate S 410,000 S 117,000 per year 4 years 9% The net present value of the project is closest to: A) $378,963 B) S(31,037) C) $410,000 D) $58,000 9. When using the NPV method for a particular investment decision, if the present value of the cash inflows is equal to the present value of the cash outflows, then: 946 12