Matthew Corporation is considering adding a new product line that will require an investment of $218,000. The product line is estimated to generate cash inflows of $32,000 the first year, $18,000 the second year, and $21,000 each year thereafter for ten more years. What is the payback period? If the company sets the cutoff for payback at 9 years will the company add the new product line or reject it? 0 A. 6.81 years and reject making the product line O B. 10.00 years and accept making the new product line C. 0 D. 10.00 years and reject making the new product line 6.81 years and accept making the new product line Dandy's Fun Park is evaluating the purchase of a new game to be located on its Midway. Dandy's has narrowed their choices down to two: the Wacky Water Race game and the Whack - A- Mole game. Financial data about the two choices follows Investment Useful life Estimated annual net cash inflows for 6 years Residual value Depreciation method Wacky Water Race $32,000 Whack-A- Mole $29,000 6 $8,719 $7,784 $0 straight-line straight- line If internal rate of return is used to decide which project the decision would be? A. O B. C. D. Choose whack-A-Mole which is 5.8% higher Choose whack-A-Mole which is 6% higher Choose Wacky Water Race which is 8% lower Choose Whack-A-Mole which is 8% higher Dandy's Fun Park is evaluating the purchase of a new game to be located on its Midway. Dandy's has narrowed their choices down to two: the Wacky Water Race game and the Whack - A Mole game. Financial data about the two choices follows. Investment Useful life Estimated annual net cash inflows for 8 years Wacky Water Race $33,000 Whack A- Mole $22,000 8 $5, 064 $6,186 Residual value Depreciation method straight- line straight - line Using the Internal rate of return to make the decision,which alternative(s) should Family Fun Park select? 0 A. O B. The Wacky Water Race game should be selected; 4% lower The Whack-A-Mole game should be selected; 6% higher The Wacky Water Race game should be selected; 6% lower The Whack-A-Mole game should be selected; 4% higher C. 0 D. Siesta Manufacturing has asked you to evaluate a capital investment project. The project will require an initial investment of $54,000. The life of the investment is 6 years with a residual value of $6,000. If the project produces net annual cash inflows of $20,000, what is the accounting rate of return? (Round any intermediary calculations to the nearest dollar and your final answer to two decimal places, X.XX%.) If accounting rate of return is used to make the decision and the minimum return is 20% then Siesta would 0 A. 22.22% and not invest 0 B. 11.11% and not invest OC. 22.22% and invest D. 37.04% and invest