Norwood, Inc. is considering three different independent investment opportunities. The present value of future cash flows, initial investment, net present value and profitability index for each of the projects are as follows: Project C $1,770,000 Present value of future cash flows Initial investment Net present value Profitability index Project A $2,070,000 870,000 $1,200,000 2.38 Project B $2,060,000 880,000 $1,180,000 2.34 830,000 $ 940,000 2.13 In what order should Norwood prioritize investment in the projects? Multiple Choice ACB ABC 2.C.A BAC Vright Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $1,000,000 and a 5-year life. There is no salvage value for the equipment. The increase in cash flow each year of the equipment's life would be as follows: Year 1 Year 2 Year 3 Year 4 Year 5 $ 386,000 $361,000 $ 296,000 $ 241,000 $ 196,000 What is the payback period? Multiple Choice 2.28 years 289 years 3.40 years 2.85 years Homer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $133,500. The equipment will have an initial cost of $534,000 and have a 5-year life. If the salvage value of the equipment is estimated to be $9.000, what is the annual net cash flow? Multiple Choice O $24.500 $28.500 $142.500 $238.500