(5. Jenkins is considering investing in a project that will require an initial investment of $200,000 and will generate cash flows of $52,757 per year for five years. Jenkins requires a 12% return on all investments. If Jenkins uses the net present value and internal rate of return methods. respectively, would Jenkins accept/reject the investment? Net present value Internal rate of return a. Reject Accept (b. Accept Reject C. Reject Reject d. Accpet Accept 9. Blinko Products is considering leasing an airplane for use by its sales staff. If the airplane is leased, the company would make an immediate deposit of $40,000 to cover any damage during use. The lease would run for five years, at the end of which time the deposit would be refunded. The lease would require an annual payment of $100,000 (the first payment is due at the end of Year 1). At the end of the five-year period, the plane would revert back to the manufacturer. Blinko uses a discount rate of 10%. What is the net present value of leasing the airplane? 10. Under the indirect method of preparing a statement of cash flows, which of the following would be added to net income to determine cash flows from operating activities? a. Gain on sale of equipment. b. Increase in prepaid expenses. c. Increase in accounts payable. d. All of the above. e. None of the above