D. S1550 c. $1329 d. $1555 10. Larry's lawn service needs to purchase a new lawnmower costing $7756 to replace an old lawnmower that cannot be repaired. The new lawnmower is expected to have a useful life of 4 years, with no salvage value at the end of the period. If Larry's required rate of return is 11%, what level of annual cash savings must the lawnmower generate to be considered an acceptable investment under the net present value method? a. $3000 b. $2500 c. $2000 d. $2750 11. Which of the following is usually the best method for making a capital budgeting decision? a. ARR b. NPV c. IRR d. GMO 12. If the net present value is positive, then the profitability index is: a. 1 b. >1 d. 0 or making a capital budgetingde IRR d. GMO 12. If the net present value is positive, then the profitability index is: b. >1 c.