11. Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): $ $ 30,000 6,000 Investment required in equipment Annual cash inflows Salvage value of equipment Life of the investment Required rate of return 15 10 years % Refer to Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The net present value of the investment is: A) $15,636 B) $24,000 C) $45,636 D) $60,000 12. Lambert Manufacturing has $100,000 to invest in either Project A or Project B. The following data are available on these projects (Ignore income taxes.): $ Project A 100,000 Cost of equipment needed now Working capital investment needed now Annual cash operating inflows Salvage value of equipment in 6 years Project B $ 60,000 $ 40.000 $ 35,000 $ $ 40,000 10,000 Refer to Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided Both projects will have a useful life of 6 years and the total cost approach to net present value analysis. At the end of 6 years, the working capital investment will be released for use elsewhere. Lambert's required rate of return is 14% The net present value of Project A is: A) $51,000 B) $60,120 C) $55,560 D) $94,450