1. A 6-year project is estimated to cost $350,000 and have no residual value. If the straight-line depreciation method is used and estimated total net income is $126,000. Determine the average rate of return. 2. A project has estimated annual cash flows of $95,000 for four years and is estimated to cost $260,000. Assume a minimum acceptable rate of return of 12%. Below is a table for the present value of $1 at compound interest. Year 12% 1 .893 2 .797 3 .712 4 .636 a. Determine the net present value of the project. $ b. Determine the present value index. Round your answer to two decimal places. 3. Axelgold Company produces parts for the auto industry. Part X2 is machined in Department #1, which has the following budgeted conversion costs: Labor 230,000 Depreciation 32,000 Maintainance 12,000 Supplies 26,000 TOTAL 300,000 All costs are driven by machine hours. Total possible hours for the year are 2,800. It takes .03 hours to machine one unit of Part X2. a. Compute Department #1's budgeted cell conversion cost rate for the current year. Round to the nearest cent. $ per machine hour b. Compute Part X2's budgeted cell conversion cost per unit. Round to the nearest cent. $ per unit