1&2 problems

ET: EE21 | cDe AaBbc 1 Normal 1 No Spac... Heading 1 Heading 2 Title Paragraph Styles 1. A machine costs $800,000 to purchase. It will produce a cash inflow of $200,000 in year 1, $400,000 in year 2, and $600,000 in year 3. The required return is 12 percent. Calculate the NPV 2. An investment has the following cash flows and a required return of 13 percent. Based on IRR, should this project be accepted? Why or why not? Year Cash Flow -$42,000 15,300 2 28,400 3 7,500 3. A project will produce operating cash flows of S35.000 a year for three years. The project requires the purchase of equipment at an initial cost of $84,000 and additional investment in net working capital of $3.500 (which will be fully recovered at the end of nroiectis life). The equipment will be depreciated straight-line to a zero book value over