Use Exhibit 12B.1 and Exhiblt 12B.2. Each of the fallawing scenarios is independent. Assume that ail cash flows are after-tax cash flows. a. Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits will be s480,000 per year. The system conts $2,700,000 and will tast b. Evee Cardenas is interested in investing in a women's specialty shop. The cost of the investment is $270,000.5he estimates that the return from owring her own shop 10 yearsi will be 152,500 per year. She estimates that the shop will have a useful life of 6 years. c. Barker Company calculated the NPV of a project and found it to be 963,900 . The project's life was estimated to be 8 years. The required rate of return used for the hov calculotion was 1046 . The project was expected to produce annual after-tax cash flows of $135,000. Required: 1. Compute the NPV for Campbell Manufacturing, assuming a discount rate of 12%, If required, round all present value calculations to the nearest dollar Should the company buy the new welding system? 2. Conceptual Connection: Assuming a required rate of return of 8%, calculate the Nipy for Evee Cardenas" investment, Round to the nearest doliar. If required, round all present value calculations to the nearest dollar, Use the minus sign to indicate a negative NPV. Should she invest? What if the estimated return was $135,000 per year? Calculate the new NPV for Evee Cardenas' investment. Would this afect the decision? What does this teil You about 1. Compute the NPY for Campbell Manufacturing, assuming a discount rate of 12%. If required, round all present value calculatiens to the nearest dollar Should the company buy the new welding system? 2. Conceptual Connection: Assuming a required rate of return of 8%, calculate the Npy for Evee Cardenas' investment. Round to the nearest dollar, If required, round all present value caiculations to the nearest dollar. Use the minus sign to indicate a negative 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 deelsion? What does this tell you about your analysis? flound to the nearest dollar. 3. What was the required ikvestment for Barker Company's project? found to the nearest dollar, If requilred, round all present value calculations to the nearest dollar. Festbect * Chedk wer Net Present Value (NPV): NPV =I The difference between the present value of future cash flows and the initial investment outlay