Fill in the Blank QuestionFill in the blank question.A company is considering an investment opportunity with a cost of $5,000 that will provide future cash flows of $8,000. The cash flows for the investment for the next 4 years are: $1,000, $1,000, $2,000 and $4,000. Assume a required rate of return of 10%. The NPV is $ (rounded to nearest dollar).Present Value of 1RatePeriods10%10.909120.826430.751340.6830Present Value of an Annuity of 1RatePeriods10%43.1699

Fill in the Blank QuestionFill in the blank question.An investment that costs $5,000 will produce annual cash flows of $3,000 for 3 years. Using a required return of 8%, the investment will generate a NPV of $ (rounded to nearest dollar).Present Value of 1RatePeriods7%8%9%10.93460.92590.917420.87340.85730.841730.81630.79380.772240.76290.73500.708450.71300.68060.6499Present Value of an Annuity of 1RatePeriods7%8%9%10.93460.92590.917421.80801.78331.759132.62432.57712.531343.38723.31213.2397

Multiple Choice QuestionAn investment that costs $30,000 will produce annual cash flows of $10,000 for 4 years. Using a required return of 8%, the investment will generate (rounded to the nearest dollar) a:Present Value of 1RatePeriods7%8%9%40.76290.73500.7084Present Value of an Annuity of 1RatePeriods7%8%9%43.38723.31213.2397Multiple choice question.positive NPV of $33,121.positive NPV of $3,121.negative NPV of $31,121.negative NPV of $3,121.

A company is considering the purchase of new equipment for $60,000. The projected annual net cash flows are $24,500. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 10% return on investment. The present value of an annuity of $1 for various periods follows: Period Present value of an annuity of $1 at 10%1 0.90912 1.73553 2.4869What is the net present value of this machine (rounded to the nearest whole dollar) assuming all cash flows occur at year-end?

Multiple Choice QuestionWhich of the following is the approximate internal rate of return for an investment that costs $12,680 and has net cash flows of $4,000 for 4 years?Present Value of 1RatePeriods8%10%12%40.73500.68300.6355Present Value of an Annuity of 1RatePeriod8%10%12%43.31213.16993.0373Multiple choice question.10%12%8%6%

NPV Calculate the net present value (NPV) for the following 20-year projects.Comment on the acceptability of each. Assume that the firm has an opportunity costof 14%.a. Initial investment is $10,000; cash inflows are $2,000 per year.b. Initial investment is $25,000; cash inflows are $3,000 per year.c. Initial investment is $30,000; cash inflows are $5,000 per year.