24) Yates, Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available Investment A Investment B 225,000 7 years $20,000 Initial capital investment Estimated useful life $275,000 8 years Estimated residual value $15,000 Estimated annual net cash inflow for 10 years Required rate of return $55,000 12% $35,000 12% Compute the payback period for each investment. Which would you prefer? Show your calculations and round to one decimal place. (8 points) 22 Ken Jones has just won the state lottery. The state offers the following three payout eptions for after-. tax prize money: 1.$50,000 per year at the end of each of the next six years 2. $300,000 (lump sum) now 3. $400,000 (lump sum) six years from now Calculate the present value of each scenario using an 8% annual discount rate. Show your Round to nearest whole dollar. (15 points) claculations. Present value of an ordinary annuity of $1 9% 8% 0.926 0.917 2 1.80 1.783 1.759 0.93 2 2.5 2.531 2.62 3.31 3.240 3.38 3.890 3.99 4.1 6 4767 4.623 4.486 Present value of $1: 8% 7% 0.917 0.92 0.93 0.842 0.857 0.87 2 0.772 0.794 0.81 0.708 0.73 0.76 50.713 0.681 0.650 0.596 0.6 0.66