Problem 2. For each capital budgeting project below, indicate whether management should Accept or Reject by printing the letter A or R, respectively. in the space provided next to each project. Select the best reason for the respective action from the list of Reasons by printing a legible, CAPITAL uppercase letter in the space provided A. because profit is zero B. because the investment will create operating losses C. because the total cash paid out is greater than the total cash received Reasons D. because the investment's return is less than the hurdle rate E. because the investment earns a rate equal to the company's hurdle rate G. because the investment's return is larger than the cost of capital H. because the investment's return is less than the cost of capital J because the investment's return is greater than the required rate of return or Reason An investment project has an accounting rate of return of 10.5%. The initial outlay for the investment is $123,000. The hurdle rate is 10.7%. Ranco has a cost of capital at 5.6% and a required rate of return at 6.8%, Ranco evaluated a potential investment and determined the IRR was zero. DR evaluated a potential investment and determined the NPV to be zero. DR's required rate of return is 8.8% and its cost of capital is 7%. Problem 3. Kalen Products generated revenue totaling $600,000 during 2017 with variable costs totaling $352,500 and fixed costs totaling $157,500. Use and display answers with 4 decimals. A. Compute the operating leverage for Kalen. Circle your answer. B. Use the operating leverage approach and show calculations to determine Kalen's new profit if it experiences a 16% decrease in sales volume. Circle your