Reference no: EM132565398

Question 1: What is the present value of the $40,000 cash expenses paid annually?

Option 1: $151,640

Option 2: $124,200

Option 3:$200,000

Option 4:$40,000

Question 2: What is the present value of the investment?

Option 1:$13,670

Option 2:$0

Option 3:$7,460

Option 4: $44,120

Question 3: Based on the net present value....

Option 1: The rate of return for the investment is less than 10%

Option 2: The fox company should purchase the equipment

Option 3: The rate of return for the investment is greater than 10%

Option 4: The rate of return for the investment is equal to the discount rate