Assume that you are thinking about starting your own small business. You have made the following estimates regarding this opportunity: You can rent a location for your business at a cost of $36,000 per year. The equipment costs incurred to start the business would total $250,000. The equipment would have a 5year useful life and a salvage value of $25,000. - Your company's estimated sales per year would equal $350,000 and its variable cost of goods sold would be 30% of sales. - Other operating costs would include $60,000 per year in salaries, $4,000 per year for insurance, $25,000 per yearfor utilities, and a 3% sales commission. Assuming a ve-year time horizon and a 12% discount rate, the net present value ofthis investment opportunity is closest to: Multiple Choice 0 $101,901. $111,301. 0 0 $118,401. 0 $114,901. Assume that a company is considering purchasing a machine for $50,000 that will have a veyear useful life and a $5,000 salvage value. The machine will lower operating costs by $17,500 per year. The company's required rate of return is 15%. The net present value ofthis investment is closest to: Click here to view Exhibit 1451 and Exhibit 1452, to determine the appropriate discount factor{s} using the tables provided. Multiple Choice Assume the following information for a capital budgeting proposal with a fiveyear time horizon: Initial investment: Cost of equipment {zero salvage value) $416,366 Annual revenues and costs: Sales revenues $336,366 Variable expenses $136,366 Depreciation expense $ 56,366 Fixed outofpocket costs $ 46,363 Click here to view Exhibit 1431 and Exhibit 1432, to determine the appropriate discount factor{s} using the tables provided. This proposal's internal rate of return is closest to: Multiple Choice 0 20%. O 22%. O 17%. O 15%