(Ignore income taxes in this problem.) Koala Kody's Eucalyptus Confections uses a discount rate in its capital budgeting of: 12% Partial analysis of an investment in automated equipment with a useful life of 5 years has thus far yielded a net present value of (42,500) This analysis did not include any estimates of the intangible benefits of automating this process nor did it include any estimate of the salvage value of the equipment. (a) Ignoring any salvage value, how large would the additional cash flow per year from the intangible benefits have to be to make the investment in the automated equipment financially attractive? (Round to the nearest dollar.) (b) Ignoring any cash flows from intangible benefits, how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive? (Round to the nearest dollar.) Project BJ Project KN Project RT Project VY 250,000 $ 300,000 $ 350,000 $ 250,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 68,000 80,000 80,000 80,000 80,000 120,000 88,000 88,000 88,000 88,000 88,000 95,000 Project AM K & M Sales has the following capital budget for 2021: 550,000 Here is the information for each of the projects being considered: The cost of capital used for the discount rate is 12% Initial Investment $ 150,000 $ Annual Cash Flows (including salvage): 2022 49,000 2023 48,000 2024 48,000 2025 65,000 2026 2027 2028 2029 2030 2031 Which projects should K & M Sales invest in for 2021? (show your work and the reason for your answer) Annuity rate for 3 years 2.40183 Annuity rate for 4 years 3.03735 Annuity rate for 5 years 3.60478 Annuity rate for 7 years 4.56376 Annuity rate for 9 years 5.32825 PV of 1 rate for 4 years 0.63552 PV of 1 rate for 5 years 0.56743 PV of 1 rate for 6 years 0.50663 PV of 1 rate for 8 years 0.40388 PV of 1 rate for 10 years 0.32197 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500 92,000