- 7) Kwik Dogs is considering the installation of a new cooker that will cut annual operating costs by $11.900. The system will cost $38,900 and will be depreciated to zero using straight-line depreciation over its five-year life. What is the amount of the earnings before interest and taxes for this project? Ignore bonus depreciation. A) $19,680 B) -S4,120 C) $5,525 D) $4,120 E)-$19,680 18) 18) Which one of the following is a project acceptance indicator given an independent project with investing type cash flows? A) Profitability index that is less than 1.0 B) Discounted payback period that is greater than the required return OYA C) Modified internal rate of return that exceeds the required return D) Project's internal rate of return that is less than the required return E) Average accounting return that is less than the internal rate of return 19)_ AB 19) High Breeze is considering expanding on some land that it currently owns. The initial cost of the land was $364,500 and it is currently valued at $357,900. The company has some unused equipment that it currently owns valued at $29,000 that could be used for this project if $8,200 is spent for equipment modifications. Other equipment costing $157,900 will also be required. What is the amount of the initial cash flow for this expansion project? A)-$585,600 B) -$158,720 C) -$530,600 D) -$559,600 1000 1082 OS. Z .002.522.000.001 molt a E) -$553,000 o boal ow si bomogao bostore 20) Project A has a required return on 9.2 percent and cash flows of-$87,000, $32,600,$35,900, and 20) $43,400 for Years 0 to 3, respectively. Project B has a required return of 12.7 percent and flows of-$85,000, $14,700, $21,200, and $89,800 for Years 0 to 3, respectively. Which project(s) should you accept based on net present value if the projects are mutually exclusive? A) Accept either one, but not both SE B) Reject both projects C) Accept both projects bacon bago D) Accept Project A and reject Project B Ostwolde de bolal E) Reject Project A and accept Project B via bjond ado el