A firm, with an 18% cost of capital, is considering the
following projects (on January 1, 2011):

Jan. 1, 2011, Cash outflow (000's omitted)
Dec. 31, 2015, Cash inflow (000's omitted)
Project internal rate of return

Project A $3,500 $7,400 15%
Project B 4,000 9,950 ?

Present Value of $1 Due at End of "N" Periods
N 12% 14% 15% 16% 18% 20% 22%
4 .6355 .5921 .5718 .5523 .5158 .4823 .4230
5 .5674 .5194 .4972 .4761 .4371 .4019 .3411
6 .5066 .4556 .4323 .4104 .3704 .3349 .2751

52. Using the net present value method, Project A's net
present value is

a. $316,920
b. $0
c. $(265,460)
d. $(316,920)

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine