Assume that a company has provided the following information regarding a capital investment opportu nity: Initial investment in equipment $156,666 Initial investment in working capital $ 25,666 Estimated annual sales $146,666 Estimated annual cash operating expenses $ 86,666 The equipment has a sixyear useful life and no salvage value. The working capital will be released at the end of the project. The company's tax rate is 30%. Assuming a discount rate of 16%, the present value of all relevant cash ows from year 3 is closest to: Multiple Choice 0 $31,?36. $35,922. $26 ,922. O 0 $34,730. 0 Which of the following statements is false with respect to the simple rate of return? Multiple Choice 0 The annual incremental net operating income included in the numerator should include the incremental revenues that result from making the investment. The initial investment included in the denominator should be reduced bythe salvage value of the new equipment The initial investment included in the denominator should include the cash outlay associated with that investment. The annual incremental net operating income included in the numerator should be reduced by the depreciation charges that resuhs from making the investment. Assume the following information for a capital budgeting proposal with a fiveyear time horizon: Initial investment: Cost of equipment {zero salvage value) $356,666 Annual revenues and costs: Sales revenues $366,666 Variable expenses $136,666 Depreciation expense $ 56,666 Fixed outofpocket costs $ 46,666 Click here to view Exhibit 148-1 and Exhibit 143-2, to determine the appropriate discount factor{si using the tables provided. Assuming a discount rate of12%, this proposal's protability index is closest to: Multiple Choice 0 1.29. 1.34. 1.43. O O 1.36. O