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Information for two alternative projects involving machinery investments follows: Project 1 Project 2 Initial investment 5 (126,666) 5 (96,666) Salvage value 6 16,666 Annual income 15,666 12,666 a. Compute accounting rate of return for each project. b. Based on accounting rate of return, which project is preferred? Complete lis queslion by entering your answers in tile tabs bebw. Required A Required B Compute accounting rate of return for each project. \fRowan lCompany is considering two alternative investment projects. Each requires a $250,000 initial investment. Project A is expecte: to generate net cash flows of $50,000 per year over the next six years. Project E is expected to generate net cash flows of $50,000 per year over the next seven years. Management requires an 8% rate of return on its investments. (W of $1, F'v' of $1, F'V. of $1, and FV. of $1] (Use appropriate factorial from the tables providedJ Required: 1. Compute each project's net present value. 2. Compute each project's profitability index. 3. If the company can choose only one project, which should it choose, based on profitability index? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute each project's net present value. [Do not round intermediate calculations. Round your present value factor to 4 decimals and your nal answers to 'dte nearest Ilvhole dollar.) Net present value Net present value Required 2 > Rowan Company is considering two alternative investment projects. Each requires a $250,000 initial investment. Project A is expected to generate net cash ows of $50,000 per year over the next six years. Project B is expected to generate net cash flows of $50,000 per year over the next seven years. Management requires an 3% rate of return on its investments. [PV of 51, FM\" of $1, PVA of $1, and FV. of $1] (Use appropriate fectorts] from the tables provided.) Required: 1. Compute each project's net present value. 2. Compute each project's profitability index. 3. If the company can choose only one projectr which should it choose, based on profitability index? Complete this queslion by entering your answers in le tabs below. Required 1 Required 2 Required 3 Compute each project's protability index. [Do not round intermediate values. Enter your answers rounded to the nearest whole dollar.) II II_i _--- A shoe manufacturer is evaluating new equipment that would custom t athletic shoes. The new equipment costs $90,000 and will generate $35,000 in net cash flows for ve years. (Negative cumulative cash ows should be indicated with a minus sign} Determine the break-even time for this equipment. Initial investment (90 sun) I 1. 0000: _{90 0011} _[910 can; Year1 35 [IUD x (1.9091: 25.wa 032s. === moi nesso=