Question 19 345 Brune Company is contemplating investing in a new piece of manufacturing machinery The amount to be invested is $180,000. The present of the cash flows generated by the project is $103,000. Should they invest in this project? yes, because the rate of return on the project exceeds the desired rate of retum used to calculate the presentine of the chows Ono, because net present value is $17.000 O yes, because the rate of return on the project is equal to the desired rate of return used to calculate the present value of the futuro cash flows O no, because the rate of return on the project is less than the desired rate of retum used to calculate the present value of the future cash flows panse Question 20 3. Grace Co. can further process Product B to produce Product C. Product B is currently selling for $60 per pound and costs $38 per pound to produce. Product would sell for $95 per pound and would require an additional cost of S12 per pound to produce. What is the differential income of producing and selling Product C? O $50 per pound 545 per pound OS23 per pound O $35 per pound Question 21 Rowan Quinn Company manufactures kitchen appliances. Currently, it is manufacturing one of its components at a variable cost of $40 and fixed costs (unavoidable) of S15 per unit. An outside provider of this component has offered to sell Rowan Quinn the component for $45. Determine the best plan and calculate the savings. O S10 savings per unit if purchased O $15 savings per unit if purchased O savings per unit if manufactured O S10 savings per unit if manufactured Question 22 2018 Mason Corp had $425,000 in invested assets, sales of $600,000, income from operations amounting to 559,000, and a desired minimum rate of return on investment of 129. The residual income for Mason Corp is O $8,000 O S32,750 O SO OS(13,000)