Discuss how some projects can be altered after they have been accepted, and how these alterations can change a project's cash flows and thus is realized NPV.

All the following methods are used to estimate the cost of common equity except A) Capital Asset Pricing Model (CAPM) B) Dividend (Cash Flow) Discount Model C) Bond-Yield-Plus-Risk Premium Approach D) Credit Rating Approach

Landry’s Tool Supply Corporation is considering purchasing a machine that costs $100,000 and will produce annual cash flows of $40,000 for five years. The machine is expected to be sold at the end of five years for $12,000.

What is the net present value of the proposed investment? Landry’s requires a 15 percent return on all capital investments using the present value tables in Exhibits 26-3 and 26-4. (Round your "PV factors" to 3 decimal places.)