THE FOLLOWING DATA APPLY TO THE NEXT THREE PROBLEMS Toya Motors needs a new machine for production of its new models. The financlal vice president has appointed you to do the capital budgeting analysis. You have identified two different machines that are capable of periorming the job. You have completed the cash flow analysis, and the expected net cash flows are as follows: 1. What is the payback perlod for Machine B? a. 1.0 year b. 2.0 years c. 2.4 years d. 2.6 years e. 3.0 years 2. The cost of capital is uncertain at this time, so you construct NPV profiles to assist in the final decision. The profiles for Machines B and O cross at what cost of capital? a. 6% b. 10% c. 18% d. 24% e. They do not cross in the upper right-hand quadrant 3. If the cost of capital for both projects is 14 percent at the time the decision is made, which project would you choose? 0. Project B; it has the higher positive NPV. b. Project O; it has the higher positlve NPV. c. Neither; both have negative NPVs. d. Either; both have the same NPV. e. Project B; it has the higher IRR