D Question 14 7 pts Vesta Corporation is considering an investment with a cost of $500,000, an estimated useful life of 5 years, and no salvage value. Projected GROSS cash flows from the investment are $150,000 per year. The company is subject to an average tax rate of 30%. Using the above information, answer the following questions: A) Annual accrual basis net income from the investment is projected to be: Select) B) Annual net cash flows from the investment are projected to be: Select) D Question 15 7 pts Bush Gardening Company is considering purchasing a machine for $21,000 with no salvage value. The machine will generate net cash flows of $2,000 per year. Annual depreciation expense using the straight-line method would be $1,500. Using the above information, answer the following questions: A) What is the payback period for the new machine? [Select] B) Using a discount rate of 4%, what is the net present value of this project? [ Select ] Netfli Question 16 3.5 pts Johnson S.P.A. invested $100,000 in a capital project; it has a 3-year life and a salvage value of $40,000. If Johnson projects net income from the project to be $50,000 per year, the accounting rate of return (ARR) based on the average investment is: O 47% O 50% O 71% O 83% 16796 D Question 17 3.5 pts Which of the following is LEAST likely to be considered in capital budgeting analysis? The purchase of office supplies and inventory The long-term lease of an office building for corporate headquarters The acquisition of manufacturing equipment Different options for a multimillion-dollar settlement for corporate malpractice The purchase of another company, using long-term debt to finance the acquisition