15.Lancaster Corporation is considering an investment in new equipment which will cost $600,000 and is expected to last for 5 years. The firm estimates that it will generate net operating cash flows...

15.Lancaster Corporation is considering an investment in new equipment which will cost $600,000 and is expected to last for 5 years. The firm estimates that it will generate net operating cash flows from the equipment of $150,000 per year. Assuming that Lancaster requires a 10% return on investment, what is the present value of the future operating cash flows? Show supporting computations in good form.

16.On January 1, 2007 The Corgy Company adopted a plan to accumulate funds to retire $8,000,000 of bonds payable which are due on December 31, 2016. Corgy plans to make ten annual deposits that will earn 10%. The first payment will be made on December 31, 2007 What annual payment should Corgy make?