Bark Company is considering buying a machine for $120,000 with an estimated life of ten years and a $30,000 salvage value. Annual depreciation will be $10,000. The machine is expected to generate net annual cash flows of $30,000 each year. The cash payback period on this investment is years 3 years 4 years 10 years The per-unit standards for direct labor are 3 direct labor hours at $10 per hour. If in producing 2,000 units, the actual direct labor cost was $59,400 for 6,080 direct labor hours worked, the total direct labor variance is $600 favorable $800 unfavorable 0 0 0 0 $800 favorable $600 unfavorable The following information is available for two potential investments by Panda Company: Project Red Project Green Initial investment $40,000 $70,000 Net annual cash flow 10,000 19,300 Net present value 18,112 25,875 Salvage value 5,000 0 Useful life 10 yrs. 8 yrs. Using profitability index as a screening method, Panda should Accept Project Green because it has a higher profitability index. Accept Project Green because it has a lower profitability index. Accept Project Red because it has a lower profitability index. Accept Project Red because it has a higher profitability index