(Ignore income taxes in this problem.) Galindo Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $178, 848, would have a useful life of 8 years, and would have value. The tractor-trailer be used in the company's hauling business, resulting in additional net cash inflows of $36,000 per year. The internal rate of return on the investment in the tractor-trailer is closest to: A. 10% B. 15% C. 12% D. 13% (Ignore income taxes in this problem.) The management of Can tell Corporation is considering a project that would require an initial investment of $47,000. No other cash outflows would be required. The present value of the cash inflows would be $55, 930. The profitability index of the project is closest to: A. 1.19 B. 0.81 C. 0.19 D. 0.16 (Ignore income taxes in this problem.) Mercer Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $250,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $12,000 per year to operate and maintain, but would save $55,000 per year in labor and other costs. The old machine can be sold now for scrap for $10,000. The simple rate of return on the new machine is closest to: A. 17.9% B. 7.5% C. 22.0% D. 7.2%