37. Roske Company is considering a project with an initial investment of $40,000 and annual

cash inflows of $8,000 per year for seven years. The company's cost of capital is 12 percent. Factors for a 12 percent interest rate for seven years are shown below:

Future Value of $1 Present Value of $1 Future Value of an Annuity Present Value of an Annuity

2.211 0.452 10.089 4.564

Using the net present value (NPV) to evaluate this proposal, the company should:

invest in the proposal since the NPV is 36,512

reject the proposal since the NPV is ($3,488).

reject the proposal since the NPV is ($36,512).

invest in the proposal since the NPV is $3,488.

None of the answer choices is correct.

40. Fireside Inc. had sales as follows during 2016:

Quarter 1 Quarter 2 Quarter 3 Quarter 4

15,000 units 15,500 units 18,000 units 16,000 units

Fireside expects sales in each quarter of 2013 to be 15% more than the respective quarters for 2016. If each unit sells for $40, what amounts will appear as sales revenue in the quarterly sales budgets for 2013?

$690,000; $713,000; $828,000; $736,000

$741,750; $741,750; $741,750; $741,750

$540,000; $558,000; $648,000; $576,000

$600,000; $620,000; $720,000; $640,000

None of the answer choices is correct.