Screening Function Your company’s cost of capital was determined to be 12%. Several investment alternatives are being considered, and the discounted cash flows have given the following results:

Net present value:

1.. A new machine was analyzed, and a net present value of zero resulted.

2.. A new product line was analyzed, and a negative net present value of $60 resulted.

3.. An investment was being considered. The analysis yielded a net present value of $250.

Internal rate of return:

1.. A plant expansion project promised a yield of 12%.

2.. An investment in additional transport trucks would yield an internal rate of return of 10%.

3.. The addition of another assembly line would add cash flows that would give an internal rate of return of 16%.

Determine which projects should be accepted as investment opportunities and which should be rejected.