Dan's Deli needs a new meat slicer and must choose between the Thumb Trimmer (TT) and the Knuckle Knicker KK), The TT costs less but is outlasted by the KK. The revenues are unaffected by the choice of slicer, so only the after-tax costs of the two slicers are shown below. Both cash flows and the 10.1% WACC are expressed in real terms. Which slicer do you recommend? CF. CF Slicer TT KK CF -5,000 -7,000 CF -500 -700 CF: -500 -700 CF --500 -700 -700 --700 You Answered KK, its EAC is -$2,503 Correct Answer TT, its EAC is -$2,514 Your division has a $5,000 budget and a set of 7 potential projects. Their (already discounted) cash flows and investment requirements are shown below. What is the best set of projects to invest in given your capital constraint? 2 Project 3 5 6 Invest -2,000 -1.750 -500 -1,000 -500 -1.250 -1,500 570 535 1,465 980 PV(CF) 2,065 1,830 2,240 PI 35 o 30 Rank +200 Correct Answer Projects 7, 2, 5, and 4 You Answered Projects 5, 2, 1, and 7