SHOW ALL STEPS. I want to double check all of my answers Complete each of the 6 following situations as instructed (a-f).

a) An investment project has the following characteristics:

Cost of Equipment -> $22,820 Annual Cash Inflows-> $5,000 Internal rate of Return-> 12% What is the life of the equipment?

b) The Redford Company is planning an investment with the following characteristics:

Useful Life-> 7 years Yearly Net cash inflow- $40,000 Salvage value-> $0 Internal Rate of return-> 20 % Discount rate -> 16% What is the initial cost of the equipment?

c) HiCo Company purchased a machine with an estimated useful life of seven years. The machine will generate cash inflows of $9,000 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 $17,000?

D) In an effort to reduce costs, WilaDo Manufacturing Corporation is considering an investment in equipment that will reduce defects. This equipment will cost $420,000, will have an estimated useful life of 10 years, and will have an estimated salvage value of $50,000 at the end of 10 years. WilaDos discount rate is 22%. What minimum amount of cost savings will this equipment have to generate per year in each of the 10 years in order for it to be an acceptable project?

E) You have deposited $15,584 in a special account that has a guaranteed interest rate. If you withdraw $3,700 at the end of each year for 5 years, you will completely exhaust the balance in the account. The guaranteed interest rate is closest to:

F) Five years ago, Jim Stargazer purchased 600 shares of 9%, $100 par value preferred stock for $75 per share. Stargazer received dividends on the stock each year for five years, and finally sold the stock for $90 per share. Instead of purchasing the preferred stock, Stargazer could have invested the funds in a money market certificate yielding a 16% rate of return.

Required: Determine whether or not the preferred stock provided at least the 16% rate of return that could have been received on the money market certificate.

Hint: For which one of the investments can you define the cash flow in and cash flow out given the information in the problem? Can you determine for the other investment, what the Net Present Value of the investment with the defined cash flows at the yield rate of the other investment? How would you do this? (Second hint: You have already done one like it in the problems before this one!)