Demand for a product is 12,000 units per year. Every time an order is made, the company must pay $15.00 per order. The cost to hold an order in inventory is $2.00 per unit per year. Calculate the cost if the company orders 3.000 units each time. O A. $100 O B. $125 O C. $10,000 OD. $150 1 Caldwell Corporation is considering an investment proposal that will require an initial outlay of $806,000 and would yield yearly cash inflows of $202,000 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 2 1.783 1.759 1.736 3 2.577 2.531 2.487 3.312 3.24 3.17 3.993 3.89 3.791 6 4.623 4.486 4.355 5.206 5.033 4.868 8 5.747 5.535 5.335 7 O A. $353,500 O B. $357,318 O C. $403,000 OD. $251,667 Rocco Manufacturing is considering following two investment proposals: Proposal X Proposal Y Investment $722,000 $518,000 Useful life 5 years 4 years Estimated annual net cash inflows received at the end of each year $170,000 $94,000 Residual value $64,000 SO Depreciation method Straight - line Straight-line Annual discount rate 10% 9% Present value of an ordinary annuity of $1: 8% 9% 10% 0.926 0.917 0.909 1 O A. $841,319 O B. $644,470 O C. $684,214 OD. $651,876