Jared's Mat Stand wants to invest in a lathe to make their own...

Jared's Mat Stand wants to invest in a lathe to make their own mats. The cost of the lathe is $7,500. The net cash flows resulting from the investment are as follows: Year 1: $2,000; Year 2: $6,000; Year 3: $5,000; Year 4: $700. The company's cost of capital is 16.25%. Compute the NPV of the project.

Group of answer choices

$6,200.00

$13,700.00

($2,226.21)

$2,226.21

Table Bottom wants to purchase a new saw that will make their tables smoother. The cost of the machine is $367,000. The net cash flows resulting from the investment are as follows: Year 1: $90,000; Year 2: $160,000; Year 3: $300,000; Year 4: $10,000. The company's cost of capital is 10.50%. Compute the NPV of the project.

Group of answer choices

($74,541.37)

$560,000.00

$193,000.00

$74,541.37

Lewis and Park Travel Tours wants to invest in three new vehicles to use with tourists. The cost of the vehicles is $35,000. The net cash flows resulting from the investment are as follows: Year 1: $2,000; Year 2: $26,000; Year 3: $19,000. The company's cost of capital is 9.85%. Compute the NPV of the project.

Group of answer choices

$47,000.00

$12,000.00

($2,700.53)

$2,700.53

Swift Stairs Inc is considering investing in a new machine. The cost of the investment is $200,000. The net cash flows resulting from the investment are as follows: Year 1: $10,000; Year 2: $50,000; Year 3: $110,000; Year 4: $90,000; Year 5: $50,000; Year 6: $200,000. Compute the payback period for this project.

Group of answer choices

3.33

4.00

6.00

2.50

Llama Lawn-a is considering buying a new high-end lawn mower. The mower will cost $20,000. The cash flows resulting from the investment are as follows: Year 1: $12,000; Year 2: $8,000; Year 3: $5,000; Year 4: $1,500; Year 5: $1,250.  Calculate the IRR of the project.

Group of answer choices

18.91%

$1,250.61

23.62%

#NUM!