34. If income taxes are ignored, how is depreciation used in the following capital budgeting techniques? lntemal Rate of Net Present Return Value A ) Excluded Excluded B ) Excluded Included 0 ) Included Excluded D ) Included Included 35.If the net present value of a project is zero based on a discount rate of 16%, then the internal rate of return is: A) equal to 16%. B) less than 16%. C) greater than 16%. D) cannot be determined from this data. 36.Three potential investment projects (A, B, and C) at Nit Corporation all require the same initial investment, have the same useful life (3 years), and have no expected salvage value. Expected net cash inows from these three projects each year is as follows: A B c Year 1 Php 1,000 Php 2,000 Php 3,000 Year 2 Php 2,000 Php 2,000 Php 2,000 Year 3 Php 3,000 Php 2,000 Php 1,000 What can be determined from the information provided above? A) the net present value of project C will be the highest. B) the internal rate of return of projects A and 0 cannot be computed. C) the net present value and the internal rate of return will be the same for all three projects. ) D both A and B above. 37. Knox Company uses 10,000 units of a part in its production process. The costs to make a part are: direct material, Php12; direct labor, Php25; variable overhead, Php13; and applied fixed overhead, Php30. Knox has received a quote of Php55 from a potential supplier for this part. If Knox buys the part, 70 percent of the applied fixed overhead would continue. Knox Company would be better off by A) Php50,000 to manufacture the part B) Php 150,000 to buy the part C) Php40,000 to buy the part D) Php160,000 to manufacture the part. 38. Paulson Company has only 25,000 hours of machine time each month to manufacture its two products. Product X has a contribution margin of Php50, and Product Y has a contribution margin of Php64. Product X requires 5 hours of machine time, and Product Y requires 8 hours of machine time. If Paulson Company wants to dedicate 80 percent of its machine time to the product that will provide the most income, the company will have a total contribution margin of A) Php250,000 B) Php240,000 C) Php210,000 D) Php200,000