06 - Capital Budgeting Annual cash inflows from three competing investment opportunities are given below. Compute the present value of the cash inflows for each inve discount rate. The initial investment is $1,000 for Option A $1,500 for Option B, and $2,500 for Option C. Indicate which option is best. Yew Option Options Optionc $3.000 $3.000 $1.500 $2,250 $2,250 3 $2,250 $1,500 $1,500 "53,000 SD $750 $750 5 51.500 $1,050 $4,500 12 Total 59.000 $12.000 5550 15 11 Dundar Mifflin makes electronic products for the RCMP. The following data is for the first six months: Direct Labor Hours Manufacturing Overhead January 145,000 $295,000 February 65,000 |$309,000 March $7,000 S323,000 April 58,000 $320,000 May $181.000 25,000 29,000 June $162.500 Required: 1. Use the high-low method to estimate the cost formula (6 marks) 2. Estimate the total overhead cost at an activity level of 40,000 machine hours, using the separate estimates you obtained for its components. marks)