13. Lambert Manufacturing hos $100,000 to invest in either Project A or Project. The following data are available on these projects (Ignore income taxes Project A Project B Cost of equipment needed now $ 100,000 $ 60,000 Working capital investment needed now $ 40,000 Annual cash operating inflows $ 40,000 $ 36,000 Salvage value of equipment in 6 years $ 10,000 Refer to Exhibit 128-1 and Exhibit 128-2, 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 not 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 Bis A) $90,356 B) $76,115 C) $36,115 D) $54,356 14. The management of Opray Corporation is considering the purchase of a machine that would cost $360,000, would last for 7 years, and would have no salvage value. The machine would reduce labor and other costs by S78,000 per year. The company requires a minimum pretax return of 11% on all investment projects (Ignore income taxes.) Refer to Exhibit 128-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided The present value of the annual cost savings of $78,000 is closest to: A) $763,084 B) $177,027 c) $546,000 D) $367,536 15. Eddie Corporation is considering the following three investment projects (Ignore income taxes): Project C Project D Project E Investment required $ 36,000 $ 41,000 $ 85,000 Present value of cash inflows $ 39,960 $ 47,560 $ 92,650 Rank the projects according to the profitability index, from most profitable to least profitable. A) E, C, D B) E, D, C C) D, C, E Dj C, E, D