1. The rate of earnings is 12% and the cash to be received in two years is $41,184. Determine the present value amount, using the following partial table of present value of $1 at compound interest: (round to two decimal points).

   Year	6%	10%	12%
   1	0.943	0.909	0.893
   2	0.890	0.826	0.797
   3	0.840	0.751	0.712
   4	0.792	0.683	0.636

   a.$34,017.98

   b.$32,823.65

   c.$36,777.31

   d.$29,323.01

2. .Use this information for River Corporation to answer the question that follow.

3. The management of River Corporation is considering the purchase of a new machine costing $380,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for five years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment:

   Year	Income from Operations		Net Cash Flow
   1	$20,000		$95,000
   2	20,000		95,000
   3	20,000		95,000
   4	20,000		95,000
   5	20,000		95,000

   The net present value for this investment is

   a.$20,140

   b.$(19,875)

   c.$(20,140)

   d.$19,875