Question 5 of 12 > -14 5 View Policies Current Attempt in Progress The Flint Company is planning to purchase $453,000 of equipment with an estimated 7-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment: Year Projected Cash Flows 1 $235,000 N 130,000 W 116,000 4 53,000 UT 60,800 40,000 7 49,500 Total $684,300 Click here to view the factor table. Calculate the net present value of the proposed equipment purchase. Flint uses a 11% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.) Net present value $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit AnswerQuestion 6 of 12 J4 E View Policies Current Attempt in Progress Garrett Boone, Avavai Enterprises' vice president of operations. needs to replace an automatic lathe on the production line. The model he is considering has a sales price of $201,868 and will last for 15 years. It will have no salvage value at the end of its useful life. Garrett estimates the new lathe will reduce raw materials scrap by $20,000 per year. He also believes the lathe will reduce energy costs by $3,000 per year. If he purchases the new lathe, he will be able to sell the old lat he for $5,000. Click here to view the factor table. [3] Calculate the lathe's internal rate of return. [Round answer to 0 decimal places. 2,3. 25%\") Internal rate of return ' % (b) lfAvavai Enterprises uses a 6% hurdle rate, should Garrett purchase the lathe? l V | [c] Without doing analr calculations, what do you know about the lathe's net present value? Net present value will be V . eTexthook and Media Save for Later Attempts: 0 of 3 used Submit Ftl' Question 8 of 12 - f 4 E 'iew Policies :urrent Attempt in Progress Grouper's Accounting Museum is exploring the purchase of a new building with a useful life of 19 years to use as its main gallery space. The building will cost $800,100. Once it has been purchased, the museum will terminate its current lease, which costs $62,300 per year. The new gallery will allow the museum to display more of its permanent collection, as well as to showcase traveling exhibits. The increased exhibit space, along with the new buildings location, is expected to increase admissions revenue by $2 6,600 per year. Calculate the payback period for the proposed investment in the building. Assume that all cash ows occur evenly throughout the year. Payback period years eTextbook and Media Save for Later Attempts: 0 Of 3 USEd Submit An- -' Question 9 of 12