1) Jenni's Diner has expected net annual cash flows of $16,200, $18,600, $19,100, and $19,500 for the next four years, respectively. At the end of the fourth year, the diner is expected to be worth $57,900 cash. What is the present value of the diner at a discount rate of 11.6 percent? A) $101,016.38 B) $98,411.20 C) $93,090.25 D) $87,492.16 E) $104,998.02 1 2) TH Maufacturers expects to generate cash flows of $129,600 for the next two years. At the end of the two years the business will be sold for an estimated $3.2 million. What is the value of this business at a discount rate of 14 percent? A) $2,704.655 B) $2,900,411 C) $2,675,703 D) $2,848,392 E) $2,284,644 2) 3) You are considering two independent projects that have differing requirements. Project A has a required return of 12 percent compared to Project B's required retum of 13.5 percent. Project A costs $75,000 and has cash flows of $21,000, $49,000, and $12,000 for Years 1 to 3, respectively. Project B has an initial cost of $70,000 and cash flows of $15,000, $18,000, and $41,000 for Years 1 to 3, respectively. Based on the NPV, you 3) should: A) accept Project A and reject Project B B) accept both Project A and Project B. C) reject both Project A and Project B D) accept Project B and reject Project A E) accept whichever one you want but not both