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 %?