19. Spring Corp. has two could use in divisions, Daffodil and Tulip. Daffodil produces a gadget that Tulip Tulip currently purchases 100,000 gadgets on the open market. $13 each. If Daffodil transfer price Daff costs are S6 per gadget while the full cost is $9.35. Daffodil sells gadgets for is operating at less than full capacity, what would be the minimum odil would accept for an internal transfer? A. $6.00 B. $9.3S C.$12.50 D. $13.00 awatha Corp is considering the purchase of a new piece of equipment. The cost savings from would result in an annual increase in cash flow of $200,000. The equipment will 20. H the equipment ha ve an initial cost of $900,000 and have a 6 year life. There is no salvage value for the equipment. If the hurdle rate is 8%, what is the approximate net present value? Ignore income tax es. The present value of $1 at 8% over 6 years is 0.630, and the present value of annuity of S1 at 8% over 6 years is 4.623. A. $924,600 B. $24,600 C. $900,000 D. $300,000 21. Smitty Corp. whose required rte of return is 1 0%, is considering the purchase of a new piece of equipment. The internal rate of return of the project, which has a life of 8 years, is 12%o. The project would have A. an accounting rate of return greater than 10% B. a payback period more than 8 years C. a net present value of zero D. a net present value greater than zero 22. The discount rate that would return a net present value equal to zero is the A. Annual rate of return B. Accounting rate of return C. Hurdle rate D. Internal rate of return awatha Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $200,000. The equipment will have an initial cost of $900,000 and have a 6 year life. There is no salvage value for the equipment. What is the payback period? A. 1.33 years B. 2.57 years C. 4.50 years D. 6.00 years 23. Hi