A company is considering the purchase of a new machine to replace a 5 -year old machine and has gathered the following information: If the company replaces the old machine with the new machine, what is the cash flow in period 0 ? A. $(51,200) B. $(53,000) C. $(49,000) D. $(51,800) Table 1 Table 2 Table 3 Table 4 Present Value of an Annuity An entity is evaluating two mutually exclusive projects, one requiring a $4 million initial outlay and the other a $6 million outlay. The Finance Department has performed an extensive analysis of each project. The chief financial officer has indicated that there is no capital rationing in effect. Which of the following statements are correct? 1. Both projects should be rejected if their payback periods are longer than the company standard. II. The project with the highest internal rate of return (IRR) should be selected (assuming both IRRs exceed the hurdle rate). III. The project with the highest positive net present value should be selected. IV. Select the project with the smaller initial investment, regardless of which evaluation method is used. A. 1, II, and IV only. B. II and III only. C. I, II, and III only. D. I and III only