[The following information applies to the questions displayed below.] Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 6% return from its investments. Initial investment Net cash flows: Year 1 Year 2 Year 3 $ (350,000) 105,000 104,000 91,000 Check r QS 11-19 (Algo) Net present value with unequal cash flows LO P3 Compute this machine's net present value. (PV of $1. FV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.) Net Cash Flow Present Value Factor Present Value of Net Cash Flows Year 1 Year 21 Year 3 Totals Initial investment Net present value $ S $ 0 es QS 11-18 (Algo) Profitability index LO P3 Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $460,000 and has a present value of all its cash flows of $1,900,000. Project 2 requires an initial investment of $4 million and has a present value of all its cash flows of $6 million. (a) Compute the profitability index for each project. (b) Based on the profitability index, which project should the company select? Complete this question by entering your answers in the tabs below. Required A Required B Compute the profitability index for each project. Numerator Project 1 Project 2 Profitability Index Denominator Profitability Index 1 Profitability index 0 Required & Required B > (a) Compute the profitability index for each project. (b) Based on the profitability index, which project should the company select? Complete this question by entering your answers in the tabs below. Required A Required B Based on the profitability index, which project should the company select? Based on the profitability index, which project should the company select? QS 11-23 (Algo) Internal rate of return LO P4 Perez Company is considering an investment of $28,115 that provides net cash flows of $8,300 annually for four years. (a) What is the internal rate of return of this investment? (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) The hurdle rate is 6%. Should the company invest in this project on the basis of internal rate of return? Complete this question by entering your answers in the tabs below. es Required A Required B What is the internal rate of return of this investment? Present value factor Internal rate of return Required A Required B > Perez Company is considering an investment of $28,115 that provides net cash flows of $8,300 annually for four years. (a) What is the internal rate of return of this investment? (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) fro the tables provided. Round your present value factor to 4 decimals.) (b) The hurdle rate is 6%. Should the company invest in this project on the basis of internal rate of return? es Complete this question by entering your answers in the tabs below. Required A Required The hurdle rate is 6%. Should the company Invest in this project on the basis of internal rate of return? Should the company invest in this project on the basis of internal rate of return? < Required A Required >>