24. Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two. Project B costs $120.000 and is expected to generate $64,000 in year one, S67.000 in year two, $56,000 in year three, and $45,000 in year four. Lithium, Inc.'s required rate of return for these projects is 10%. The equivalent annual annuity amount for project A is A. $18,532. O B. $13,357. O C. $12,989. O D. $15,024. 25. The net present value method O A. is consistent with the goal of shareholder wealth maximization. O B. uses all of a project's cash flows. Oc. recognizes the time value of money. O D. all of the above 26. A new project is expected to generate $800,000 in revenues, $250,000 in cash operating expenses, and depreciation expense of $150,000 in each year of its 10- year life. The corporation's tax rate is 35%. The project will require an increase in net working capital of $85,000 in year one and a decrease in net working capital of $75,000 in year ten. What is the free cash flow from the project in year one? O A. $410,000 O B. $380,000 Oc. $375,000 OD. $298,000 27. Trinitron, Inc. purchased a new molding machine for $85,000. The company paid $8,000 for shipping and another $7,000 to get the machine integrated with the company's existing assets. Trinitron must maintain a supply of special lubricating oil just in case the machine breaks down. The company purchased a supply of oil for $4,000. The machine is to be depreciated on a straight- line basis over its expected useful life of 8 years. What will depreciation expense be during the first year? A. $12,500 O B. $11,625 OC. $13,000 D. $11,500