Global International would like to spend $215,000 to expand its warehouse. However, the company has a loan outstanding that must be repaid in 2.5 years and thus will need the $215,000 at that time. The warehouse expansion project is expected to increase the cash inflows by $60,000 in the first year, $140,000 in the second year, and $150,000 a year for the following 2 years. Should the firm expand at this time? Why or why not? A. Yes; because the money will be recovered in 2.10 years B. Yes; because the money will be recovered in 1.87 years C. Yes; because the money will be recovered in 1.69 years D. No; because the project never pays back E. No; because the money will not be recovered in time to repay the loan Fast Motors is considering purchasing some new equipment costing $393,000. The equipment will be depreciated on a straight-line basis to a zero book value over the four-year life of the project Projected net income for the four years is $16, 900, $25, 300, $27, 700, and $18, 400. What is the average accounting rate of return? A 12.49 percent B. 11.63 percent C. 12.01 percent D. 11.23 percent E 10.87 percent