THE FOLLOWING DATA APPLY TO THE NEXT THREE PRODLEMS Tova Motors needs a new machine for productlon of lits new models. The financlal vice president has appointed you to do the capital budgeting analysls. You have identifled two dilferent machines that are capable of performing the Job. You have completed the cash flow analysts, and the expected net cash flows are as follows: 1. What is the payback perlod for Machine B? a. 1.0year b. 2.0 years c. 2.4 years d. 2.6 years e. 3.0 years 2. The cost of capltal is uncertaln 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% a. They do not cross in the upper right-hand quadrant 3. If the cost of caplial for both projects is 14 percent at the time the decislon is made, which project would you choose? a. Project B; It has the higher posittve NPV. b. Project O; It has the higher positive NPV. c. Nelther; both have negative NPVs. d. Either; both have the same NPV. e. Project B; It has the higher IRR