D Ace Inc. is evaluating two mutually exclusive projects-Project A and Project B. The initial cash outflow is $50,000 for each project. Project A results in one cash inflow of $60,000 at the end of the fifth year. Project B results in cash inflows of $15,625 at the end of each of the next five years. The required rate of return of Ace Inc. is 10 percent. Ace Inc. should invest in: O Project B because it has a higher net present value (NPV). O Project A because it has a higher net present value (NPV). O Project A because it will yield cash every year for five years. O Project B because it has no cash inflows in the first four years of its life. Question 12 A firm's effective capital budgeting procedures result in: O lower internal rates of return. lower net present values (NPVs). a higher shareholder's value. O a higher expected rate of return. 5 pts Union Atlantic Corporation, which has a required rate of return equal to 16 percent, is evaluating a capital budgeting project. The initial cash outflow is $170,000 and cash inflow at the year-end of each of the following four years is $60,750. According to this information, which of the following statements is correct? O The project's discounted payback period should be compared with the traditional payback period to make the correct decision. O The project is not acceptable as the net present value of the project is negative. O The project's discounted payback period must be greater than its economic life. O The project is acceptable as the net present value of the project is positive