4. Peet's Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $120,000. The equipment will have an initial cost of $400,000 and have a 5 year life. If the salvage value of the equipment is estimated to be $75,000, what is the accounting rate of return? Ignore income taxes. A. 6.25% B. 8.75% C. 30.00% D. 13.75% 5. An investment of $41,651.20 promises to return $8,000 each year for the next 7 years. If taxes are ignored, what is the internal rate of return? Round to 4 decimal places A. B. C. D. 6% 10% 8% more than 10% 6. Stone, Inc. is considering three different independent investment opportunities. The present value of future cash flows, initial investment, and net present value for each of the projects are as follows: Project A Project B Project Present value of $300,000 S250.000 $275.000 future cash flows Initial investment 150.000 105.000 1:40.000 Net present value $150,000 S145.000 $135.000 Profitability Index In what order should Stone prioritize investment in the projects? A. A,C,B B. B, C, A C. A, B, C D. B, A, C