If the net present value of a project is zero based on a discount rate of16%, then the internal rate of return is: Multiple Choice 0 equal to 16% less than 16%. cannot be determined from this data. 0 greater than 16%. Respass Corporation has provided the following data concerning an investment project that it is considering: Initial investment $ 166,600 Annual cash flow $ 54,606 per year Salvage value at the end of the project $ 11,669 Expected life of the project 4 years Discount rate 15% Click here to View Exhibit 148-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the project is closest to: Multiple Choice 0 $67,000 0 $160,516 0 $516 0 $(5,776) The following data pertain to an investment project (Ignore income taxes): Investment required 3? 34,955 Annual savings $5,969 Life of the project 15 years Click here to view Exhibit 148-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. The internal rate of return is closest to: Multiple Choice 0 12% 14% O O 10% O 8% Laws Corporation is considering the purchase of a machine costing $16,000 Estimated cash savings from using the new machine are $4,120 per year, The machine will have no salvage value at the end of its useful life of six years and the required rate of return for Laws Corporation is 12%. The machine's internal rate of return is closest to (Ignore income taxes): Click here to view Exhibit 148-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Multiple Choice Q 12% 14% 18% O O 16% O Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B C Investment r'equir'ed $ 86,666 $ 166,666 $ 66,666 Present value of 'Future net cash flows :3 96,666 $ 156,666 $ 84,666 If the profitability index is used, the ranking of the projects from most to least profitable would be: Multiple Choice O D,B,C,A B, D, CA A, C, B, D O O B,D,A,C O D $ 75,666 $ 129,999 The management of R0 Corporation is investigating automating a process. Old equipment, with a current salvage value of $11,000, would be replaced by a new machine. The new machine would be purchased for $243,000 and would have a 9 year useful life and no salvage value. By automating the process, the company would save $69,000 per year in cash operating costs. The simple rate of return on the investment is Closest to (Ignore income taxes): Multiple Choice 18.1% 11.1% 28.4% 17.3% 0000