1) Alf asi Industries uses the net present value method to make investment decisions and requires a 15% dall return on all investments. The company is considering two different investments. Each require arn initial investment of $15,000 and will produce cash flows as follows: End of Investment eur $8,000 8,000 8,000 2 24,000 Which investment should Alfarsi choose? A) Both investments are acceptable, but B should be selected because it has the greater net present value. B) Only Investment A is acceptable. C) Only Investment B is acceptable. D) Neither machine is acceptable. E) Both investments are acceptable, but A should be selected because it has the greater net present value. 2) A company is considering a 5-year project. The company plans to invest $60,000 now and it forecasts cash flows for each year of $16,200. The company requires a hurdle rate of 12%. Calculate the internal rate of return to determine whether it should accept this project. Selected factors for a present value of an annuity of S1 for five years are shown below: Interest rate 10% 12% 14% Present value of an annuity of $1 factor for year 5 3.7908 3.6048 3.433 A) The project should be accepted. B) The project should be rejected because it earns less than 10%. C) Only 9% is acceptable. D) Only 10% is acceptable. E) The project earns more than 10% but less than 12%. At a hurdle rte of 12%, the project should be rejected