16 5 points Phi Corporation is considering an investment that would cost $160,380, has a 3 year life and will result in annual cost savings of $60,000 in each of the three years. The internal rate of return on this project is closest to: For individuals preferring to solve with tables as presented in the text, rather than using the Excel spreadsheet covered in class, factors for the present value of an annuity for three years at various interest rates are provided below: Periods 6% 2.673 7% 2.624 189 12.577 19% 2.532 6% 8% 7% 9% Information on three investment projects is given below: Project A Initial Investment $ 70,000 $ 80,000 $ 50,000 Net present value $100,000 $ 90,000 $ 65,000 B C Using the project profitability index, rank the projects from most to least desirable: O A,B,C OB,C,A , , , , Rho Company is considering a new investment that costs $160,000, has an 8 year life and no salvage value, Below is an income statement related to the investment's estimated annual revenues and expenses. Revenues $ 150.000 Expenses Salaries $ 75,000 Utilities 12,000 Depreciation 20.000 Other cash expenses 10.000 117.000 Netoperating income $ 33,000 The payback period on this investment is closest to: 1.1 years 4.8 years 3.0 years 5.0 years