B. Multiple Choice, returns on investment is computed in the following manner. The company's required, A company is considering a proposal that requires an initial investment of $91,100, has predicted net cash inflows of $30,000 per year for four years and no salvage value. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. The investment costs $45,000 and has an estimated $6,000 salvage value. The building has an estimated useful life of 40 years and an expected salvage value of $550,000. b) 4.75%. negative? Choose Numerator: Accounting Rate of Return Choose Denominator: = Accounting Rate of Return = Accounting rate of return, Required information [The following information applies to the questions displayed below.) It generates annual net cash inflows of $10,000 each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. The investment costs $45,000 and has an estimated $6,000 salvage value. Required information [The following information applies to the questions displayed below.) Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. Management predicts this machine has a 9-year service life and a $60,000 salvage value, and it uses strai, A machine costs $700,000 and is expected to yield an after-tax net income of $52,000 each year. The net present value of the investment is A) $1,470 B) ($13,550) C) $6,450, The Zinger Corporation Is considering an Investment that has the following data: Cash Inflows occur evenly throughout the year. Using the original cost of the asset, the unadjusted rate of return on, A machine costs $600,000 and is expected to yield an after-tax net income of $23,000 each year. Project 1 requires an initial investment of $400,000 and has a present value of cash flows of $1,100,000. Compute this machines accounting rate of return. Peng Company is considering an investment expected to generate an average net income after taxes of $1,950 for three years. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. What amount should Flower Company pay for this investment to earn an 11% return? The expected average rate of return, giving effect to depreciation on investment is 15%. Ronis' investment in asset base is $1,500,000, and they assume a capital charge of 10%. ), Summary of Strategic Management southern African concepts and case fourth edition, chapters 1 to 4, What of the following is not considered practice before the IRS per Circular 230? The company anticipates a yearly net income of $2,950 after taxes of 34%, with the cash flows to be received evenly throughout each year. Present value Assume the company requires a 12% rate of return on its investments. All rights reserved. The company's desired rate of return used in the present value calculations was, A company is considering investment in a project that costs Rs. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. Get access to this video and our entire Q&A library, How to Calculate Net Present Value: Definition, Formula & Analysis. Createyouraccount. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Management predicts this machine has a 10-year service life and a $100,000 salvage value, and it uses straight-line depreciation. The salvage value of the asset is expected to be $0. The management of Bischke Corporation is investigating an investment in equipment that would have a useful life of 8 years. The cost of the investment is. The payback period for this investment is: a) 3.9 years b) 3 years, Hung Company accumulates the following data concerning a proposed capital investment: cash cost of $216, 236, net annual cash flows of $43,800, and present value factor of cash inflows for 10 years 5.22 (rounded). projected GROSS cash flows from the investment are $150,000 per year. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Firm Value Young Corporation expects an EBIT of $16,000 every year forever. Select chart Furthermore, the implication of strategic orientation for . The system, A machine costs $700,000 and is expected to yield an after-tax net income of $30,000 each year. a. A company's required rate of return on capital budgeting is 15%. The warehouse will cost $370,000 to build. The expected future net cash flows from the use of the asset are expected to be $580,000. If the accounting ra, A company buys a machine for $76,000 that has an expected life of 7 years and no salvage value. The investment costs $45,300 and has an estimated $7,500 salvage value. The cost of the asset is $700,000 and it will be depreciated using s, The MoMi Corporation's income before interest, depreciation and taxes, was $1.7 million in the year just ended, and it expects that this will grow by 5% per year forever. Which of the following functional groups will ionize in Compute the net present value of this investment. 0.9, Merrill Corp. has the following information available about a potential capital investment: Initial investment $1,800 000 Annual net income $200,000 Expected life 8 years Salvage value $240,000 Merrill's cost of capital 10% Assume the straight-line deprec, Drake Corporation is reviewing an investment proposal. The investment costs $45,300 and has an estimated $7,500 salvage value. Assume Peng requires a 5% return on its investments. Cash flow What amount should Crane Company pay for this investment to earn an 9% return? criteria in order to generate long-term competitive financial returns and . The investment costs $49,000 and has an estimated $8,800 salvage value. You can specify conditions of storing and accessing cookies in your browser, Peng Company is considering an investment expected to generate an average net income after taxes of $2,600 for three years. Compute this machine's accoun, A machine costs $500,000 and is expected to yield an after-tax net income of $15,000 each year. Required information Use the following information for the Quick Study below. The project is expected to have an after-tax return of $250,000 in each of years 1 and 2. The product line is estimated to generate cash inflows of $300,000 the first year, $250,000 the second year, and $200,000 each year thereafter for ten more years. Required intormation Use the following information for the Quick Study below. Assume Peng requires a 15% return on its investments. The system requires a cash payment of $125,374.60 today. Peng Company is considering an investment expected to generate an average net income after taxes of $1,950 for three years. The company is considering an investment that would yield an after-tax cash flow of $30,000 in four years. Assume Peng requires a 10% return on its investments. This investment will produce certain services for a community such as vehicle kilometres, seat . $1,950 for three years. The cost of capital is 6%. The related cash flows, net of taxes, are ex, You have the following information on a potential investment. The purpose of this study is to empirically examine the influence of firm characteristics (size, age, industry type, and ownership) on a firm's strategic orientation. The company s required rate of return is 14 percent. The investment costs $54,000 and has an estimated $7,200 salvage value. Required information (The following information applies to the questions displayed below.) Assume Peng requires a 15% return on its investments. Justice has long been an important aspect in managing and ensuring long-term successful buyer-supplier relationships because it is capable of explaining and predicting a wide range of relevant behaviours, attitudes and outcomes in such relationships (Alghababsheh et al., 2022; Griffith et al., 2006).It encompasses three dimensions in the buyer-supplier relationship, namely distributive . gifts. Compute this machine's accounti, A machine costs $500,000 and is expected to yield an after-tax net income of $19,000 each year. Compute the net present value of this investment. Note: NPV is always a sensitive problem bec. Project 2 requires an initial investment of $4,000,000 and has a present value of cash flows of $6,000,000. Select Chart Amount x PV Factor = Present Value Cash Flow Annual cash flow Residual value Net present value, Required information [The folu.ving information applies to the questions displayed below.) (before depreciation and tax) $90,000 Depreciation p.a. Compute the accounting rate of return for this. A company invests $175,000 in plant assets with an estimated 25-year service life and no salvage value. See Answer. Required information (The following information applies to the questions displayed below.] a. The company uses straight-line depreciation. c) Only applies to a business organized as corporations. What is the minimum salvage value that would make the investment attractive assuming a discount rate of 12%? If a table of present v, Grouper Company owns equipment that cost $1,044,000 and has accumulated depreciation of $440,800. The following estimates are available: Initial cost = $279,800 Cost of capital = 12% Estima, Strauss Corporation is making an $87,150 investment in equipment with a 5-year life. The company anticipates a yearly net income of $3,300 after taxes of 30%, with the cash flows to be rece, A company bought a machine that has an expected life of seven years and no salvage value. The average stock currently returns 15% and short-term treasury bills are offering 6%. Assume the company requires a 12% rate of return on its investments. copyright 2003-2023 Homework.Study.com. Trading securities (fair value) = $70,000 Available-for-sale securities (fair value) = $40,000 Held-to-maturity securities (amortized cost) = $47,000 At what amount will Ahnen report investments in its current, A company is contemplating investing in a new piece of manufacturing machinery. It gives us the profitability and desirability to undertake the project at our required rate of return. Management predicts this machine has an 8-year service life and a $40,000 salvage value, and it uses straight-line depreciation. Management estimates that this machine will generate annual after-tax net income of $540. Peng Company is considering an Investment expected to generate an average net income after taxes of $3,000 for three years. Createyouraccount. Assume Peng requires a 5% return on its investments. The current value of the building is estimated to be $300,000. Management estimates the machine will yield an after-tax net income of $12,500 each year. The investment costs $45,000 and has an estimated $6,000 salvage value. A. The excess cost over the book value of an investment that is due to expected above-average earnings is labeled on the consolidated balance sheet as: a. Question: Peng Company is considering an investment expected to generate an average net income after taxes of $3,500 for three years. What makes this potential investment risky? The present value of the future cash flows, at the company's desired rate of re, E company is a lessee with a capital lease. The company is expected to add $9,000 per year to the net income. the accounting rate of return for this investment; assume the company uses straight-line depreciation. c) 6.65%. The income tax depreciation method referred to as CCA: a) Allows a corporation some flexibility in choosing the class an asset is assigned to. These assets contribute $28,000 to annual net income when depreciation is computed on a straight-line basis. #12 Peng Company is considering an investment expected to generate an average net income after taxes of $2,900 for three years. Experts are tested by Chegg as specialists in their subject area. The salvage value of the asset is expected to be $0. The company is considering an investment that would yield a cash flow of $12,000 per year for five years. The investment costs $49,500 and has an estimated $10,800 salvage value. The investment costs$45,000 and has an estimated $6,000 salvage value. X Capital investment - $15,000 Estimated useful life - 3 years Estimated salvage value - zero Estimated net cash inflow Year 1 - $7,000 Year, A company bought a machine that has an expected life of 7 years and no salvage value. Our experts can answer your tough homework and study questions. What is Roni, You are considering an investment in First Allegiance Corp. The investment costs $45,300 and has an estimated $7,500 salvage value. The company has projected the following annual cash flows f, Lt. Dan Corporation invested $80,000 in a manufacturing equipment. The investment costs $45,000 and has an estimated $10,800 salvage value. It is expected that the rate of utilization of inputs should not exceed the corresponding outputs being produced if the efficiency of the system concerned is to be maximized. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. Goodwill. Average invested assets are $500,000, and Avocado Company has an 8% cost of capital. Assume Peng requires a 10% return on its investments. The profitability index for this project is: a. a. Enter the email address you signed up with and we'll email you a reset link. 8 years b. C. Appearing as a witness for a taxpayer PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Assume Peng requires a 15% return on its investments. The investment costs $45,600 and has an estimated $8,700 salvage value. Use the following table: | | Present Value o. Negative amounts should be indicated by #12 The asset has an estimated salvage value of $12,000, and an estimated useful life of 10 years. Peng Company is considering an investment expected to generate an average net income after taxes of $1,950 for three years. This site is using cookies under cookie policy . Axe anticipates annual net income after taxes of $1,500 from selling the product produced by the new machin, A company can buy a machine that is expected to have a three-year life and a $21,000 salvage value. Strauss Corporation is making an $89,000 investment in equipment with a 5-year life. Assume Peng requires a 5% return on its investments. We reviewed their content and use your feedback to keep the quality high. = The facts on the project are as tabulated. Peng Company is considering an investment expected to generate an average net income after taxes of $3,300 for three years. 15900 investment costs $51,600 and has an estimated $10,800 salvage What is the present value, Strauss Corporation is making a $71,900 investment in equipment with a 5-year life. The payback period, You are considering investing in a start up company. Compute the payback period. Assume that net income is received evenly throughout each year and straight-line depreciation is used. the net present value of this investment. The investment costs $59.100 and has an estimated $6.900 salvage value. To find the NPV using a financial calacutor: 1. A machine costs $190,000, has a $10,000 salvage value, is expected to last nine years, and will generate an after-tax income of $30,000 per year after straight-line depreciation. Experts are tested by Chegg as specialists in their subject area. Fair value method c. Historical cost m, Blue Fin Inc. requires all capital investments to generate a minimum internal rate of return of 15%. The Galley purchased some 3-year MACRS property two years ago at What is the accounti, A company buys a machine for $70,000 that has an expected life of 6 years and no salvage value. a. What are the investment's net present value and inte. a. Compute Loon s taxable inco. What is the most that the company would be willing to invest in this, A company has a minimum required rate of return of 9%. Required information The following information applies to the questions displayed below] Peng Company is considering an investment expected to generate an average net income after taxes of $3,500 for three years. investment costs $48,900 and has an estimated $12,000 salvage What is Ronis' Return on Investment for 2015? Compute the net present value of this investment. True, Richol Corp. is considering an investment in new equipment costing $180,000. The management of Samsung is planning to invest in a new companywide computerized inventory tracking system. PVA of $1. The estimated cash inflow from the project are as follows: Year Cash Inflow Present value factor at 10% 1 70,000 0.909 2 80,000 0.826 3 120,000 0.751 4 90,000 0.683 5 60,000 0.621 Ca, A company is considering investment in a Flexible Manufacturing System. Assume the company uses straight-line depreciation. Assume Peng requires a 5% return on its investments. Peng Company is considering an investment expected to generate an average net income after taxes of $1,950 for three years. Assume the company uses straight-line depreciation (PV of $1. A company is considering investing in a new machine that requires a cash payment of $47,947 today. Compute the net present value of this investment. The company uses the straight-line method of depreciation and has a tax rate of 40 per cent. The equipment has a five-year life and an estimated salvage value of $50,000. The annual depreciation cost is 10% of fixed capital investment. The company currently has no debt, and its cost of equity is 15 percent. , e to the IRS about a taxpayer Management predicts this machine has an 11-year service life and a $60,000 salvage value, and it uses straight-line depreciation. an average net income after taxes of $3,200 for three years. Compute the accounting rate of return for, The following data concerns a proposed equipment purchase: Cost - $159,200 Salvage value - $4,800 Estimated useful life - 4 years Annual net cash flows - $46,900 Depreciation method - Straight-line The annual average investment amount used to calcul. Required intormation Use the following information for the Quick Study below. The company uses the straight-line method of depreciation and has a tax rate of 40 percent. Talking on the telephon The company uses the straight-line method of depreciation and has a tax rate of 40 percent. The initial outlay of the project would be $800,000 and the project's assets would have a residual value of $50,000 at the end o. Explain. It is mainly used to evaluate a prospective project whether it would be profitable to the investor or not. Cullumber Company is considering an investment that will return a lump sum of $942,800, 3 years from now. The investment costs $59,500 and has an estimated $9,300 salvage value. Using a sample of Chinese-listed firms with key soil pollution regulation from 2013 to 2020, this study utilized the Difference-in-Differences method . The company uses the straight-line method of depreciation and has a tax rate of 40 percent. earnings equal sales minus the cost of sales Assume the company uses straight-line . The company uses the straight-line method of depreciation and has a tax rate of 40 percent. (Round answer to, During the year, Loon Corporation has the following transactions: $400,000 operating income; $325,000 operating expenses; $25,000 municipal bond interest; $60,000 long-term capital gain; and $95,000 short-term capital loss. What amount should Cullumber Company pay for this investment to earn a 12% return? Peng Company is considering an investment expected to generate an average net income after taxes of $1,950 for three years. What is the current value of the company? The expected net cash inflows from, A building has a cost of $750,000 and accumulated depreciation of $125,000. Carmino Company is considering an investment in equipment that is expected to generate an after-tax income of $5,000 for each year of its four-year life. Q: Peng Company is considering an investment expected to generate an average net. [22] also highlight the importance of power companies improving investment portfolio planning for various energy production resources to ensure expected production value and reduce risk. Peng Company is considering an investment expected to generate Management predicts this machine has a 10-year service life and a $100,000 salvage value, and it uses straight-line depreciation. Compute the net present value of this investment. Required information [The following information applies to the questions displayed below.] Compute. The investment costs $49,800 and has an estimated $11,400 salvage value. Management predicts this machine has a 10-year service life and a $100,000 salvage value, and it uses straight-line depreciation. The company's required r, Strauss Corporation is making an $85,900 investment in equipment with a 5-year life. What is the present value, The Best Manufacturing Company is considering a new investment. The amount to be invested is $100,000. b) Ignores estimated salvage value. The investment costs $48,600 and has an estimated $6,300 salvage value. For example: How much would you need to invest today at 10% compounded semiannually to accumulate $5,000 in 6 years from today? Compute the net present value of this investment. The business environment, namely market uncertainty and competition intensity, is also analysed in association with the firm's strategic orientation. The investment costs $45,000 and has an estimated $6,000 salvage value. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. Anglemenesis Company is planning to spend $84,000 for a new machine that is to be depreciated on a straight-line basis over 10 years with no salvage value. a) construct an influence diagram that relates these variables Learn about what net present value is, how it is calculated both for a lump sum and for a stream of income over multiple years. Compute this machine's accounti, A machine costs $200,000 and is expected to yield an after-tax net income of $5,040 each year. TABLE B.3 Present Value of an Annuity of 1 Rat Periods 1% 2% 4% 5% 6% 7% 5% 10% 12% 15% 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.8929 0.8696 1.9704 1.9416 1.9135 1.88611.8594 1.8334 8080 1.7833 1.759 .7355 16901 1.6257 2.9410 2.8839 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.4018 2.2832 3.9020 3.8077 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.0373 2.8550 3.9927 3.8897 3.7908 3.6048 3.3522 5.7955 5.6014 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.1114 3.7845 5.3893 5.2064 5.0330 4.8684 4.5638 4.1604 7.6517 7.3255 7.0197 6.73276.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.9676 4.4873 8.5660 8.1622 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590 5.3282 4.7716 9.4713 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502 5.0188 7.1390 6.8052 6.4951 5.93775.2337 11.255 10.5753 9.95409.3851 8.8633 8.3838 7.9427 7.5361 7.1607 6.8137 6.1944 5.4206 12.1337 11.3484 10.6350 9.9856 9.3936 8.8527 8.3577 7.9038 7.4869 7.1034 6.4235 5.5831 13.0037 12.1062 11.2961 10.5631 9.8986 9.2950 8.7455 8.2442 7.7862 7.3667 6.6282 5.7245 13.8651 .8493 11.9379 11.1184 10.3797 9.7122 9.1079 8.5595 8.0607 7.6061 6.8109 5.8474 14.7179 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 8.8514 8.3126 7.8237 6.9740 5.9542 15.5623 14.2919 13.1661 12.1657 11.2741 10.4773 9.7632 9.1216 8.5436 8.0216 7.1196 6.0472 16.3983 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 7.2497 6.1280 17.2260 15.6785 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 7.3658 6.1982 18.0456 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.4694 6.2593 22.0232 19.5235 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.8226 9.0770 7.8431 6.4641 25.8077 22.3965 19.6004 17.2920 5.3725 13.7648 12.4090 11.2578 10.2737 9.4269 8.0552 6.5660 29.4086 24.9986 21.4872 18.6646 16.3742 14.4982 12.9477 11.6546 10.5668 9.6442 8.1755 6.6166 32.8347 27.3555 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246 10.7574 9.7791 8.2438 6.6418 4.8534 4.7135 4.57974.4518 4.3295 4.2124 4.1002 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 10.3676 9.7868 26 8.7605 8.3064 7.8869 7.4987 12 13 14 15 16 19 20 25 30 35 40 Used to calculate the present value of a series of equal payments made at the end of each period. The building is expected to generate net cash inflows of $15,000 per year for the next 30 years. A company purchased a plant asset for $55,000. The amount, to be invested, is $100,000. Comp, Pang Company is considering an investment expected to generate an average net income after taxes of $2,900 for three years. Compute the net present value of this investment. A bond that has a $1,000 par value (face value) and a con, Strauss Corporation is making a $70,000 investment in equipment with a 5-year life. The investment costs $54,900 and has an estimated $8,100 salvage value. You would need to invest S2,784 today ($5,000 0.5568). Assume Peng requires a 15% return on its investments. 94% of StudySmarter users get better grades. Common stock. Peng Company is considering an investment expected to generate an average net income after taxes of $2,000 for three years. The investment costs $56,100 and has an estimated $7,500 salvage value. Management predicts this machine has an 8-year service life and a $60,000 salvage value, and it uses straight-line depreciation. Peng Company is considering an investment expected to generate an average net income after taxes of $3,100 for three years. The investment costs $48,600 and has an estimated $6,300 salvage value. Assume Peng requires a 10% return on its investments, compute the net present value of this investment. check bags. The following data concerns a proposed equipment purchase: Cost $136,400 Salvage value $3,600 Estimated useful life 4 years Annual net cash flows $45,700 Depreciation method Straight-line The annual average investment amount used to calculate the accounti, Landmark Company is considering an investment in new equipment costing $500,000. The company's required rate of return is 11 percent. Negative amounts should be indicated by a minus sign.) Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. The investment costs $58, 500 and has an estimated $7, 500 salvage value. The payback period f. Elmdale Company is considering an investment that will return a lump sum of $743,100, 7 years from now. d) 9.50%. Annual savings in cash operating costs are expected to total $200,000. The company uses straight-line depreciation. $40,000 Economic life 5 years Salvage value Zero Tax rate payable (assume paid in year of income) 30, A machine costs $500,000, has a $28,700 salvage value, is expected to last eight years, and will generate an after-tax income of $72,000 per year after straight-line depreciation. The investment costs $45,000 and has an estimated $6,000 salvage value. 2. The investment has zero salvage value. The company anticipates a yearly net income of $3,700 after taxes of 20%, with the cash flows to be received evenly throughout each year. What investment(s) should the firm make according to net present v, Unrealized gains or losses on available-for-sale investments occur when a company adjusts the investment to : A) average value when an asset is disposed B) average value but has not yet disposed of the asset C) fair value when an asset is disposed D) f, Finnegan Company plans to invest in a new operating plant that is expected to cost $500,000. Capital investment: $15,000 Estimated useful life: 3 years Estimated salvage value: zero Estimated net cash inflow Year 1: $7,000 Year 2: You have the following information on a potential investment. Select Chart Amount * PV Factor - Present Value Cash Flow Annual cash flow Residual value. 7 years c. 6 years d. 5 years, The amount of the estimated average income for a proposed investment of $90,000 in a fixed asset, giving effect to depreciation (straight-line method), with a useful life of 4 years, no residual value. QS 24-8 Net present value LO P3 Assume Peng requires a 15% return on its investments. The investment costs $59,400 and has an estimated $7,200 salvage value. Using the original cost of the asset, the unadjusted rate of return o, The Charles Company is planning to invest $450,000 in a factory machine. Capital investment $900,000 Estimated useful life 6 years Estimated salvage value zero Estimated annual net cash inflow $213,000 Required, Sparky Company invested in an asset with a useful life of 5 years. A company is investing in a solar panel system to reduce its electricity costs. The investment costs $52,200 and has an estimated $9,000 salvage value. Compute the net present value of this investment. Assume Pang requires a 5% return on its investments. Required information [The following information applies to the questions displayed below.) turnover is sales div The cash inflow of each investment is as follows: Year Cash inflow A Cash inflow B Cash inflow C 1 $300 $500 $100 2 $300 $400 $2, Jimmy Co. is considering a 12-year project that is estimated to cost $1,050,000 and has no residual value. Management predicts this machine has a 8-year service life and a $100,000 salvage value, and it uses str, Carla Company owns equipment that cost $1,044,000 and has accumulated depreciation of $440,800. Peng Company is considering an investment expected to generate an average net income after taxes of $2,500 for three years. Peng Company is considering an investment expected to generate an average net income after taxes of. Yokam Company is considering two alternative projects. What lump-sum amount should the company invest now to have the $370,000 available at the end of the eight-year period?