needs help in 4questions

Present values& future value

Fine Shipping Corporation's required rate of return is 12%. The company is considering an investment that would result in a single cash inflow of $9,500 at the end of five years. What is the maximum amount that the company should be willing to invest in this project? In other words, what is the net present value of this investment? (Select the answer that is closest to your calculations.)

$5,387.

$16,755.

$2,635.

$34,248.

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Arch Company is considering purchasing a machine that would cost $320,000 and would last for 6 years. At the end of 6 years, the machine would have a salvage value of $50,000. The machine would provide annual cost savings of $75,000. The company requires a rate of return of 11% on all investment projects. What is the net present value of the proposed project? (Select the answer that is closest to your calculations.)

$40,125

$24,075

$47,325

-$2,675

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A company is considering making an investment now that is expected to return a single cash inflow of $67,000 in six years from now. The company's required rate of return is 10%. What is the maximum amount that the company should be willing to invest in this project? In other words, what is the net present value of this investment? (Select the answer that is closest to your calculations.)

$37,788.

$67,000.

$118,794.

$15,385.

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Marcus Production Company has $96,000 to invest in either Project A or Project B. The following data are available on these projects:

	Project A	Project B
Cost of equipment needed now	$96,000	$43,000
Working capital investment needed now	0	$53,000
Annual cash operating inflows	$33,500	$25,900
Salvage value of equipment in 6 years	$11,500	0

Both projects will have a useful life of 6 years. At the end of 6 years, the working capital investment will be released for use elsewhere. The company's required rate of return is 14%. What is the net present value of Project B? (Select the answer that is closest to your calculated amount.) rev: 12_14_2012, 12_21_2012

$13,440

$28,893

$57,725

$4,725