Amazon is considering automating its production line at a cost of $40,000 to acquire the necessary equipment. The annual cost savings are expected to be $8,000 for 14 years. The firm requires a 20% rate of return. Ignore income taxes. (2pts each) What is the internal rate of return on this investment? a. Less than 20% b. Equal to 20% C. More than 20%% d. Cannot be determined The net present value for this investment is a. Positive b. Zero c. Negative d. Cannot be determined 5. Early, Inc. has chosen four potential investment projects. Listed below are some relevant data on these projects: Project Investment Net Present Value 1 $125,000 $62.500 2 150,000 45,000 3 75,000 52,500 4 112,500 45,000 Use the profitability index to rank these investments in terms of preference. a. 1. 3.2.4 b. 2. 1.4. 3 C. 1.2.3.4 d. 3. 1. 4.2 A value chain is the sequence of business processes in which a. Costs are determined with activity-based principles b. Value is added to a product or service c. All non-value-added activities are eliminated d. Managers determine prices 7. An organization's value chain can incorporate its L Own customers Il Own suppliers Ill. Customers' customers IV. Suppliers' suppliers a. I and II b. I and Ill c. II and IV