1. Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $820,322, $863,275, $937,250, $1,018,112, $1,212,960, and $1,225,000 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment? Round to two decimal places.

2. An investment of $83 generates after-tax cash flows of $48.00 in Year 1, $68.00 in Year 2, and $129.00 in Year 3. The required rate of return is 20 percent. The net present value is

Round to two decimal places.

3. McKenna Sports Authority is getting ready to produce a new line of gold clubs by investing $1.85 million. The investment will result in additional cash flows of $525,000, $847,500, and $1,200,000 over the next three years. What is the payback period for this project? Round to four decimal places.

4. Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project?

Year Project

0 ($11,368,000)

1 $ 2,202,589

2 $ 3,787,552

3 $3,175,650

4 $ 4,115,899

5 $ 4,556,424

Round to two decimal places.