A company provides the following data for a capital budgeting project currently under consideration: Initial investment $10,000 Annual cash flow ???? $0 8 years Salvage value Life of the project Required rate of return Net present value 14% $1,300 What is the annual cash flow associated with this investment? (Note: There may be rounding error depending on the discount factor you use. Choose the answer closest to the one you calculate.) $4,024 $1.875 $3,704 O $2,436 O $1,346 A company provides the following data for a capital budgeting project currently under consideration: $48,680 $10,000 Cost of equipment Annual cash inflows Internal rate of return 10% The useful life of the equipment must be: 4 years 5 years 6 years 7 years O 8 years TRUE or FALSE? When discounted cash flow methods of capital budgeting are used, the working capital required for a project is ordinarily counted as a cash inflow at the beginning of the project and as a cash outflow at the end of the project when it is recovered. True False TRUE or FALSE? If the internal rate of return is greater than the required rate of return for a project, then the net present value of that project is negative. True False