Question: Part 2 of question 2 help please!! Net Present Value Use Exhibit 12B.1 and Exhibit 12B.2. Each of the following scenarios is independent. Assume that

 Part 2 of question 2 help please!! Net Present Value Use

Part 2 of question 2 help please!!

Net Present Value Use Exhibit 12B.1 and Exhibit 12B.2. Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. a. Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits will be $480,000 per year. The system costs $2,700,000 and will last 10 years. b. Evee Cardenas is interested in investing in a women's specialty shop. The cost of the investment is $270,000. She estimates that the return from owning her own shop will be $52,500 per year. She estimates that the shop will have a useful life of 6 years. c. Barker Company calculated the NPV of a project and found it to be $63,900. The project's life was estimated to be 8 years. The required rate of return used for the NPV calculation was 10%. The project was expected to produce annual after-tax cash flows of$135,000. Required: 1. Compute the NP or Campbell Manufacturing, assuming a discount rate of 12% f required round all present value calculations to the nearest dollar 12,106 Should the company buy the new welding system? Yes 2. Conceptual Connection: Assuming a required rate o return of 8% calculate he NP for Evee Cardenas nvestment Round to the nearest present value calculations to the nearest dollar. Use the minus sign to indicate a negative NPV dollar. If required, round all Should she invest? Nov What if the estimated return was $135,000 per year? Calculate the new NPV for Evee Cardenas' investment. Would this affect the decision? What does this tell you about your analysis? Round to the nearest dollar. 48,455 X

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