A, Roger Industries is considering two capital investment proposals. Estimates regarding each project are provided below: Project XRS Project AAA Initial investment S800.000 S1.200.000 Annual net income 40.000 84.000 Net annual cash inflow 200.000 284,000 Estimated useful life 5 years 6 years Salvage value The intemal rate of return for Project AAA is approximately A) 10% B) 11% C) 126 D) 99 A company has a minimum required rate of retum of 10% and is considering investing in a project that requires an investment of 1968,000 and is expected to generate cash intlows of $84,000 at the end of each year for three years. The present value of future cash inflows for this project is A) SI 96.000 B) S202 203 C) $229,796 D) SI 2008 A company has a minimum required rate of retum of 9% and is considering investing in a project that costs $350,000 and is expected to generate cash inflows of $140,000 at the end of each year for three years. The net present value of this project is A) S154,340. B) $70.000 $35.436 D) $4.340 Page 12 D. Tally Industries is considering purchasing cquipment costing S60,000 with a 6-year useful life. The equipment will provide cost savings of $14.600 and will be depreciated straight-line over its useful life with no salvage value. Tafly Industries requires a 10% rate of return What is the approximate net present value of this investment? A) $27.600 B) S1 584 C) S1.772 D) $5.496