A disadvantage of a company leasing a fixed asset is the company eliminates the risk owning an obsolete asset. True False Question 16 2 pts are the rates at which currency in another country can be exchanged for U.S. dollars. foreign exchange Question 17 2 pts is the process by which management allocates funds among competing capital investment proposals. Inflation is when general price levels often increase in rapidly shrinking economy. True False Question 19 2 pt The average rate of return method considers the amount of income earned over the life of a proposal. True False Question 20 2 pt Determine the average rate of return for a project that is estimated to yield total income of $200,000 over five years, has a cost of $350,000, and has a $30,000 residual value HTML Editore BIVA - A - IX E D- E N Vxo en I IX X, SE VO 12pt - Paragraph 4 project has estimated annual net cash flows of $132,600. It is estimated to cost $712,520. Determine the cash payback period. Round to one decimal place. HTML Editor BIVA - A - Ix E 11 IX XE - DE O N V D V D The 12pt - Paragraph - O words Question 22 2 pts A project has estimated annual net cash flows of 9,600 for five years and is estimated to cost $32,225. Assume a minimum acceptable rate of return of 10%. Using the present value of an annuity table, determine (1) the net present value of the project and (2) the present value index, round to two decimals places. A project is estimated to cost $108,875 and provided annual net cash flows of $25,000 for six years. Determine the internal rate of return for this project, using the present value of an annuity table. HTML Editore BIVA A IX E 25 I IX XE - E O V elo V 12pt - Paragraph - O words Question 24 2 pts Project A requires an original investment of $42,600. The project will yield cash flows of $8,000 per year for nine years. Project B has a computed net present value of $6,250 over a sex-year life. Project A could be sold at the end of six years for a price of $25,000. (a) Using the present value tables in the chapter, to determine the net present value of Project A over a six year life, with residual value, assuming a minimum rate of 10%. (b) Which project provides the greatest net present value