Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $14,300 and will produce cash flows as follows: End of Year Investment $9,700 $ 0 9,700 0 9,700 29,100 The present value factors of $1 each year at 15% are: 0.8696 0.7561 0.6575 3 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment A is: Multiple Choice $19,133 $(14,300). $14,800. $(22,148). $7,847. A company is considering the purchase of new equipment for $75,000. The projected annual net cash flows are $30,000. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 9% return on investment. The present value of an annuity of $1 for various periods follows: Period Present value of an annuity of $1 at 98 0.9174 1.7591 2.5313 What is the net present value of this machine assuming all cash flows occur at year-end? Multiple Choice $25,000 $4,000 $939 $29,000 $73,408