A. Roger Industries is considering two capital investment proposals. Estimates regarding each project are provided below: Project XRS S800,000 40,000 200,000 Project AAA S1,200,000 84,000 284,000 Initial investment Annual net income Net annual cash inflow Estimated useful life Salvage value 5 years 6 years 0 The internal rate of return for Project AAA is approximately A) 10% B) 11% C) 12% D) 9% 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 inflows of S84,000 at the end of each year for three years. The present value of future cash inflows for this project is A) S196,000 B) $208,908 C) $229,796 D) S12,908. C A company has a minimum required rate of return of 9% and is considering investing in a project that costs S$350,000 and is expected to generate cash inflows of S140,000 at the end of each year for three years. The net present value of this project is A) $354,340 B) S70,000. C) $35436 D) $4.340 Page 12 D. Taffy Industrics is considering purchasing equipment 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. Taffy Industries requires a 10 % rate of retum. What is the approximate net present value of this investment? A) $27,600 B) $3.584 C) S1.772 D) S5,496