Best Ball Inc. has the following investment opportunities: 1. Machine A requires an initial investment of $10,000 and is projected to realize cash inflows of $4,000 in year 1, $6,000 in year 2, and $4,000 in year 3. II. Machine B requires an initial investment of $16,000 and is projected to realize cash inflows of $9,000 in year 1, $6,000 in year 2, and $8,000 in year 3. Hunter Corporation uses a hurdle rate of 14%. What is the profitability index of an investment in Machine A? Select one: O A. 0.93 OB. 1.10 O C. 1.33 O D. 1.08 When investment projects are not mutually exclusive and there is no capital rationing constraint, the firm should accept all investment proposals Select one: O A. for which it can obtain financing. O B. that have large cash inflows. O C. that have a short time span. O D. that have a positive net present value. Justin is the CFO of Rose Exterminators Inc. REI has an investment project that will produce earnings before depreciation and taxes by $25,000 per year for 3 years. The project's cost is $55,000. If the asset is part of the 3-year MACRS category (33% first year depreciation) and the company's tax rate is 24%, what is the cash flow from the project in year 1? Select one: O a. $23,356 O b. $15,100 O c. $22,671 O d. $16,667 Putters and Drivers, Inc. is considering making an investment in Project A, which will require an initial cash outlay of $20,000. Project A is expected to generate cash inflows of $6,000 for year 1, $8,000 for year 2, $10,000 for year 3, and $7,000 for year 4. The firm's hurdle rate is 11%. What is the net present value for Project A? Select one: O A. $3,301 O B. $4,529 O C. $3,821 O D. None of the above Stableford Inc. has an investment project that will save the company $15,000 per year for 3 years. The project's cost is $20,000. If the depreciation on the new investment is $6,600 the first year and the company's tax rate is 35%, what is the expected cash flow for year one? Select one: O A. $6,800 O B. $12,060 O C. $12,144 O D. $16,667