Use Exhibit 12B.1 and Ex Each of the folloning scenarios is independant. Assume that all cash flows are after-tax cash flo. a. Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits will be $480,000 per year. The system costs $1,850,000 and wll las 10 years 2B.2 to locate the present v of $1, which is the amount to be multiplied times the 12.31.ALGO 12.33.AL 12.34 b. Evee Cardenas is interested in investing in a women's specialty shop. The cost of the investment is 280,000. She estimates that the return from owning her own shoP will be $,5,000 per year. She estimates that the shop will have a useful life of 6 years c. Barkar Company calculated the NPV of a praject and found it to be $63,900. The project's life was astimated to be 8 years. The raquirad rate of raturn used for the NPV calculation was 10%. The project was expected to produce-nnual efter-tax cash flows of $135,000. 12.35 ALGO 1. compute the NPV for Campbell Manufacturing, assuming a discount rate of 12%. If required, round all present value calculations to the nearest dollar. Use the minus sign to indicate a negative NPV 12.46 Should the company buy the new welding system? 2. Conceptual Connection: Assuming 8 required rate of return of 8%, calculate the NPV for Evee Cardenas' investment. Round to the neerest dollar. If required, round all present velue colculations to the nearest dollar. Use the minus sign to indicate a nepative NPV Should she invest? What if the estimated return was $135,000 per year? Calculate the new NPV for Evee Cardenas investment Would this affect the decision? What does this tell you about your analysis? Round to the nearest dollar The shop be purchasad. This raveala that the daciaion to accept or reject in this cazo la affactad by differances in eatimatad 3. What was the required investment for Barker Company's projact? Round to tha nearast dollar. If required, round all presant value calculations to the nearest dollar. Check My Work Previous Next gress: 216 items Save and Ext Submit Assignment for Grading 2018