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The Silverside Company is considering investing in two alternative projects: Project 1 Proiect 2 Investment $200,000 $240,000 Useful life (years) Estimated annual net cash inflows for useful life $130,000 $65,000 Residual value $20,000 $10,000 Depreciation method Straight-line Straight-line Required rate of return 13% 8% What is the payback period for Project 2? O A. 3.60 years OB. 1.54 years O C. 10.00 years OD. 12.00 years Karpets Industries is investing in a new high-speed loom for weaving its rugs and carpets. The new loom will have a useful life of 7 years and cost $70,000. The loom's residual value is $4,000. Assume that Karpets requires a return of 12% and that the loom will create annual cost savings of $16,150. What is the net present value (NPV) of the new loom? (Round any intermediary calculations and your final answer to the nearest dollar.) (Click the icon to view the present value of $1 table.) (Click the icon to view the present value of annuity of $1 table.) i Data Table O A $3,709 O B. $5,517 O C. $1,901 OD. $75,517 Present Value of $1 Periods 5 0 6 7 81 8% .681 0.630 0.583 0.540 0.500 0.463 1 0 10% 0.621 0.584 .513 0.467 0.424 0.386 12% 0.567 0.507 0.452 0.404 0.361 0.322 1496 0.519 0.456 0.400 0.351 0.308 0.270 10 Print Done Data Table 1096 .791 .355 1296 3.605 Present Value of Annuity of $1 Periods 89 5 3 .9933 6 4 . 0234 7 5 .206 5.747 6.247 10 6 .710 4.584 4.983 14% 3.433 3.889 4288 4.039 4.946 .216 5.335 5.759 6.145 5.328 5.650 5 Print Done