3.Vista Company is considering two new projects, each requiring an equipment investment of $95,000. Each project will last for three years and produce the following cash inflows:

Year Cool Hot

1 $ 38,000 $ 42,000

2 42,000 42,000

3 48,000 42,000

$128,000 $126,000

The equipment will have no salvage value at the end of its three-year life. Vista Company uses straight-line depreciation and requires a minimum rate of return of 12%.

Compute the net present value of project Cool?

$6,855

$6,584

$5,680.

$5,884

No answer given.

4.

4. I have a dollar that can earn 12% interest over a period of fifteen years. What is the present value of this dollar today using six decimal places in your answer.

6.810867

6.564322

.182696

.196752

6.345611

None of these.