A company is evaluating three possible investments. Each uses the straight-line method of depreciation. Following information is provided by the company: Project A Project B Project C Investment $226,000 $54,000 $226,000 Residual value 0 16,000 22,000 Net cash inflows: Year 1 70,000 30,000 98,000 Year 2 70,000 21,000 68,000 Year 3 70,000 17,000 78,000 Year 4 70,000 14,000 38,000 Year 5 70,000 0 0 What is the accounting rate of return for Project B? (Round your answer to two decimal places.) A. 31.43% B. 29.95% C. 20.86% D. 35.27% Ignite Products is a price - taker. The company produces large spools of electrical wire in a highly competitive market; thus, it uses target pricing. The current market price of the electric wire is $700 per unit. The company has $3,100,000 in average assets, and the desired profit is a return of 7% on assets. Assume all products produced are sold. The company provides the following information: Sales volume Variable costs Fixed costs 110,000 units per year $660 $13,000,000 per year per unit If fixed costs cannot be reduced, how much reduction in variable costs will be needed to achieve the desired target? A. $217,000 B. $13,000,000 C. $72,600,000 D. $8,817,000 Glossimer Thread Company is evaluating an investment that will cost $720,000 and will yield cash inflows of $230,000 in the first year, $325,000 in the second year, and $360,000 in the third and the final year. Use the table below and determine the internal rate of return. 1 Present value of $1: 8% 0.926 2 0.857 3 0.794 4 0.735 5 0.681 9% 0.917 0.842 0.772 0.708 0.650 10% 0.909 0.826 0.751 0.683 0.621 11% 0.901 0.812 0.731 0.659 0.593 12% 0.893 0.797 0.712 0.636 0.567 The IRR of the project will be A. more than 12% B. less than 10% O C. less than 11%, more than 10% D. between 11% and 12%