Assume that a company is considering a capital investment project with a four-year time horizon and the following cash flows: 13 Cost of new equipment $210,000 Working capital required $ 50,000 Annual net cash inflows $100,000 Maintenance and repairs in third year $ 40,000 Salvage value of equipment in fourth year $ 30,000 Click here to view Exhibit 148-1 and Exhibit 148-2. to determine the appropriate discount factor(s) using the tables provided, Assuming the company's required rate of return is 20%, the profitability Index of the project is closest to: Click here to view Exhibit 14B-1 and Exhibit 1- Assuming the company's required rate of ret 13 Multiple Choice O 1.05. 1.15. 1.31. O 1.19 Which of the following four options is true? 14 Does Consider the Time Value of Money Yes Choices Option 1 Option 2 Option 3 Option 4 Capital Budgeting Method Payback method Net present value method Internal rate of return method Simple rate of return Does Consider Cash Flows No Yes Yes No No Yes Yes Option 3 Option 4 Internal rate of Simple rate of ru 14 Multiple Choice O Option 1 Option 2 Option 3 O Option 4 15 Assume that a company is considering purchasing a new piece of equipment for $240,000 that would have a useful life of 10 years and no salvage value. The new equipment would cost $20,000 per year to operate and it would replace an old plece of equipment that costs $60,000 per year to operate. The old equipment currently being used could be sold for a salvage value of $40,000. What is the amount of the initial investment associated with this proposal that should be used for calculating the simple rate of return? Multiple Choice $220,000 $200,000 $180,000 $240.000