10. (Ignore income taxes in this problem.) Fossa Road Paving Company is considering an investment in a curb-forming machine. The machine will cost $240,000, will last 10 years, and will have a $40,000 salvage value at the end of 10 years. The machine is expected to generate net cash inflows of $60,000 per year in each of the 10 years. Fossa's discount rate is 18%. What is the net present value of this machine? A) $5,840 B) $47,280 C) S(48,780) D) $37,280 11. The following data pertain to an investment project: Annual savings$5,000 Life of the project.15 years The internal rate of return is: A) 12% B) 14% C)10% D) 8% Use the following to answer questions 12-13: (Ignore income taxes in this problem.) Lambert Manufacturing has S100,000 to invest in either Project A or Project B. The following data are available on these projects: Project B Project A Cost of equipment needed now...100,000 $60,000 Working capital investment needed now.. Annual cash operating inflows.... Salvage value of equipment in 6 years ..$10,000 $40,000 ..$40,000 S35,000 Both projects will have a useful life of 6 years. At the end of 6 years, the working capital investment will be released for use elsewhere. Lambert's required rate of retum is 14%. The company uses the total cost approach to evaluating alternatives 12. The net present value of Project A is: A) $51,000 B) $60,120 C) $55,560 D) $94,450 13. The net present value of Project B is: A) $90,355 B) $76,115 C) $36,115 D) $54,355