Caldwell Corporation is considering an investment proposal that will require an initial outlay of $818,000 and would yield yearly cash inflows of $212 000 for nine years. The company uses a discount rate of 10%. What is the NPV of the investment? Present value of an ordinary annuity of $1. 8% 9% 10% 0.926 0.917 0.909 1.783 1.759 1.736 3 2.577 2.531 2.487 3.312 3.24 3.17 5 3.993 3.89 3.791 4.623 4.486 4.355 5.206 5.033 4.868 8 5.747 5.535 5 335 9 6.247 5.995 5.759 0 + 0 0 0 OA. $371,000 B. $409,000 OC. $402,908 OD. $252,500 A chemical company spent $530,000 to produce 151,000 gallons of a chemical that can be sold for $5 20 per gallon. This chemical can be further processed into a weed killer that can be sold for $7.20 per gallon. It will cost $270,000 to process the chemical into the weed killer. Which of the following is true? IN O A. To maximize operating income, the company should continue to sell the chemical as is. B. If the company decides to process further, it will increase operating income by $287,200 O c. If the company decides to process further, it will increase operating income by $32,000, OD. If the company decides to process further, it will decrease operating income by $1,087,200