11) A company is evaluating three possible investments. Each uses the straight-line method of depreciation. Followi information is provided by the company: Project A $230,000 0 Project B $54,000 12.000 Project C $230,000 36.000 Investment Residual value Net cash inflows Year 1 Year 2 Year 3 Year 4 Year 5 56,000 56,000 56,000 56,000 56,000 38,000 29,000 25,000 22,000 94,000 64,000 74,000 34,000 01 What is the accounting rate of return for Project B? (Round your answer to two decimal places.) A) 51.83% B) 38.14% C) 54.55% D) 26.19% 12) Which of the following describes the time value of money? A) The time value of money has no effect on the timing of capital investments B) A dollar received today is worth more than a dollar to be received in the future. C) Money loses its purchasing power over time through inflation. D) The fact that invested cash may not eam interest over time is called the time value of money. 13) Which of the following most accurately describes an annulity? A) a series of unequal cash payments made at equal time intervals B) a stream of equal cash payments made at equal time intervals C) an investment which produces increasing cash flows over time D) a term that does not apply to mortgage payable or bond payable 14) Door to Door Moving Company is considering purchasing new equipment that costs $720,000. Its management estimates that the equipment will generale cash inflows as follows: Year 1 2 3 4 5 $218,000 218,000 258,000 258,000 150,000 Present value of $1: 6% 0.943 0.890 0.840 0.792 0.747 7% 0.935 0.873 0.816 0.763 0.713 8% 0.926 0.857 0.794 0.735 0.681 9% 0.9171 0.842 0.772 0.708 0.650 10% 0 .909 0.826 0.751 0.683 0.621 The company's annual required rate of return is 8%. Using the factors in the table, calculate the present value of the cash inflows. (Round all calculations to the nearest whole dollar) A) 5774,000 B) $38,804 C) $885,326 D) $884,000