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All questions need to be answered. Thank you so much for the help! Use the following information for question 26 & 27. The Warren Company

image text in transcribedAll questions need to be answered. Thank you so much for the help!
Use the following information for question 26 & 27. The Warren Company is considering investing in two alternatives projects: 26) What is the payback period for Project 1 and based on playback which Project would you choose? A)16.00 years and project 2 B) 4.00 years and Project 1 C) 4.00 years and Project 2 D) 5.3 years and Project 1 27) What is the accounting rate of return (ARR) for Project 2 and based on ARR which Project would you choose? A) 33.67% and Project 1 B) 10.7% and Project 2 C) 2.33% and Project 1 D) 18 00% and Protect 1 Use the following for questions 28 & 29. Cowell Corporation is considering an investment in new equipment costing $155,000. The equipment will be depreciated on a straight-line basis over a five-year life and is expected to generate net cash inflows of $45.000 the first year, $65,000 the second year, and $90,000 every year thereafter until the fifth year. 28) What IS the payback period for this investment? The equipment has no residual value. A) 3.44 years B) 2.04 year C) 1 72 years D) 2.50 years What is the accounting rate of return for this investment? The equipment has $5,000 residual value. A) 49.0% B) 29.7% C) 19.4% 0)40.8% 30) What would a project's profitability index be if the project has an internal rate of return which is equal to the company's discount rate? A) It would be 05. B) It would be 1.0. C) It would be 0.0. D) It cannot be determined from information provided 31) Senseman Company has three potential projects from which to choose. Selected information on each of the three projects follows: Using the profitability index, rank the projects from most profitable to least profitable A) B, A, C B) C, B, A C) B, C, A D) A, B, C

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