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Chapter 11 Homework A Saved Help Save & Exit 2 Required information [The following information applies to the questions displayed below.] Park Co. is considering an investment that requires immediate payment of $28,245 and provides expected cash inflows of $9,300 annually for four years. Park Co. requires a 7% return on its investments. Part 1 of 2 2.5 points 1-a. What is 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. Round your present value factor to 4 decimals.) Amount x PV Factor = Present Value Cash Flow Annual cash flow Select Chart Present Value of an Annuity of 1 $ 0 eBook Net present value Hint Print 1-b. Based on NPV alone, should Park Co. invest? Yes No 3 Required information [The following information applies to the questions displayed below.) Part 2 of 2 Park Co. is considering an investment that requires immediate payment of $28,245 and provides expected cash inflows of $9,300 annually for four years. Park Co. requires a 7% return on its investments. 2.5 points 1-a. What is the internal rate of return? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) eBook Hint Print 1-b. Based on its internal rate of return, should Park Co. make the investment? Yes No

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