Question:

1)Horn Corporation is considering investing in a four-year project. Cash inflows from the project are expected to be as follows: Year 1, $2,000; Year 2, $2,200; Year 3, $2,400; Year 4, $2,600. If using a discount rate of 8%, the project has a positive net present value of $500, what was the amount of the original investment? (Ignore income taxes in this problem.) (Do not round your intermediate calculations and round the final answer to the nearest whole dollar.)

Question:

2) Stratford Company purchased a machine with an estimated useful life of seven years. The machine will generate cash inflows of $90,000 each year over the next seven years. If the machine has no salvage value at the end of seven years, and assuming the company's discount rate is 10%, what is the purchase price of the machine if the net present value of the investment is $170,000? (Ignore income taxes in this problem.) (Do not round your intermediate calculations and round the final answer to the nearest whole dollar.)

Question:

3)A company needs an increase in working capital of $50,000 in a project that will last four years. The company's tax rate is 30%, and its discount rate is 8%. What is the approximate present value of the working capital to be released at the end of the project (Do not round your intermediate calculations and round the final answer to the nearest whole dollar.)?

Note: calculated using Net present value and present value, please show a detailed explaination.

Thanks