1 . Question : ( TCO D ) Topple Company produces a single product . O perating data for the company and its absorption costing income statement for the last year are presented below . Units in beginning inventory 2,000 Units produced 9,000 Units sold 10,000 Sales $ 100,000 Less cost of goods sold : Beginning inventory 12,000 Add cost of goods manufactured 54,000 Goods available for sale 66,000 Less ending inventory 6,000 Cost of goods sold 60,000 Gross margin 40,000 Less selling and admin . expenses 28,000 Net operating income $ 12,000 2 . Question : ( TCO I ) ( Ignore income taxes in this problem .) Bill And ers retires in 8 years . He has $ 650,000 to invest and is considering a franchise for a fastfood outlet . He would have to purchase equipment costing $ 500,000 to equ ip the outlet and invest an additional $ 150,000 for inventories and other wor king capital needs . Other outlets in the fastfood chain have an annual net cash inflow of about $ 160,000 . Mr . Anders would close the outlet in 8 year s . He estimates that the equipment could be sold at that time for about 10 % of its original cost . Mr . Anders ' required rate of return is 16 %. Required : Part A : What is the investment ' s net present value when the discount r ate is 16 %?