28 cton 1 Lawrence Corporation is considering the purchase of a new piece of equipment. When discounted at the cost of capital of 17%, the project has a net present va $24,670. When discounted at rate of 21%, the project has a net present value of $(29,010). The Internal rate of return of the project is: О zero Multiple Choice between 17% and 21% greater than % between zero and 17%

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21. NPV and Payback Period Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 10 percent. Ι Year Project F Project G 0 -$195,000 -$298,000 1 98,400 71,600 2345 86,300 94,500 81,600 123,600 72,000 166,800 64,800 187,200 a. Calculate the payback period for both projects. b. C. Calculate the NPV for both projects. Which project, if any, should the company accept?

QS 11-17 (Algo) Net present value of annuity and salvage value LO P3 Pablo Company is considering buying a machine that will yield income of $3,100 and net cash flow of $14,700 per year for three years. The machine costs $45,900 and has an estimated $11,100 salvage value. Pablo requires a 10% return on its investments. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your present value factor to 4 decimals.) Years 1-3 Year 3 salvage Totals [Initial investment Net present value Net Cash Flows X PV Factor 14,700 x 11,100 x $ S = = Present Value of Net Cash Flows $ 0 0