Required:1. Calculate the NPV for each system. Which system would you recommend?2. Calculate the IRR for each system. Which system would you recommend?EXERCISESRound all present value calculations to the nearest dollar and payback periods to two decimal places.Exercise 12-31 Payback PeriodEach of the following scenarios is independent. Assume that all cash flows are after-tax cash flows.receive a cash income of $120,000 per year from the investment.1.What is the payback period for Colby?2. What is the payback period for Kylie?3. How much did Carsen invest in the project ?4. How much cash does Rahn receive each year?1. Compute the ARR on the new equipment that Cobre Company is considering.2. CONCEPTUALCONNECTION Which project should Emily Hansen choose based on the ARR? Notice tha3. How much did the company in Scenario c invest in the project ?4. What is the average net income earned by the project in Scenario d?OBJECTIVE DOBJECTIVEExercise 12-33 Net Present Value

$135,000.$8,000,000$6,000,00028,000,0006,000,00038,000,0006,000,00048,000,0006,000,00058,000,0006,000,000$320,000$120,0002280,000120,0003240,000320,0004160,000400,0005120,000440,000$510,000$360,0002510,000360,0003510,000360,0004510,000360,0005510,000360,000Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows.1. Compute the NPV for Campbell Manufacturing, assuming a discount rate of 12%. Should the company buy 2.

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- Spring '10
- MICHELLEFREEMAN
- Accounting, Revenue, Net Present Value, PAYBACK PERIOD, after-tax cash