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discount factor for the present value of an annuity for six years is 4.355.

What is the net present value of the machine?

111.

Salem Co. is considering a project that yields annual net cash inflows of $420,000 for years 1 through 5, and net cash inflow of $100,000 in year 6. The project will require an initial investment of $1,800,000. Salem's cost of capital is 10%. Present value information is present below: What was Salem's expected net present value for this project?

112.

Yarrow Co. is considering the purchase of a new machine that costs $450,000. The new machine will generate net cash flow of $150,000 per year and net income of $100,000 per year for five years. Yarrow's desired rate of return is 6%. The present value factor for a five-year annuity of $1, discounted at 6%, is 4.212. The present value factor of $1, at compound interest of 6% due in five years, is 0.7473.

What is the new machine's net present value?

113.

The discount rate is determined in advance for which of the following capital budgeting techniques?

114.

The following information pertains to Krel Co.'s computation of net present value relating to a contemplated project: Discounted expected cash inflows $1,000,000 Discounted expected cash outflows 700,000 Net present value is: 115.

Oak Company bought a machine that they will depreciate on a straight-line basis over an estimated life of seven years.

The machine has no salvage value. They expect the machine to generate after-tax net cash inflows from operations of $110,000 in each of the seven years. Oak's minimum rate of return is 12%. Information