0 Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, what is the EAA for Project A? Year Project A Project B -580,000 -580,000 290,000 130,000 2 290,000 130,000 150,000 230,000 4 150,000 230,000 5 230,000 115,000 3 6 O 112,210 O 35,055 O 36,943 O 33,652 138,356 A new transmission in your truck will cost $7,500. Luckily, it should reduce maintenance expense by $3,525 each year for the next 10 years. What is the profitability index of the transmission? Use a discount rate of 12.3%. O 2.81 O 2.99 2.62 O 2.76 O 2.40 Riverview Company is evaluating the proposed acquisition of a new production machine. The machine's base price is $200,000, and installation costs would amount to $28,000. Also, $10,000 in net working capital would be required at installation. The machine will be depreciated for 3 years using simplified straight line depreciation. The machine would save the firm $110,000 per year in operating costs. The firm is planning to keep the machine in place for 2 years. At the end of the second year, the machine will be sold for $100,000. Riverview has a cost of capital of 12% and a marginal tax rate of 34%. What is the NPV of the project? O $9,555 O $3,875 O $12,155 0 - $9,783 $19,016