Question 31 12.5 points Save Answer The following data pertain to an investment proposal (Ignore income taxes) Amount Description Cost of the investment $94,000 $28,000 Annual Cost Savings Estimated salvage value Life of the project $12,000 10 years 18% Discount rate Use the following selection from the present value tables, to calculate the net present value of the proposed investment. The net present value of the proposed investment is closest to: Present Value of $1 Present Value of an Annuity of $1 Period 9% 18% Period 9% 18% 5 0.650 0.437 5 3.890 3.127 10 0.422 0.191 10 6.418 4.494 20 0.178 0.037 20 9.129 5.353 O A. ($34,724) O B. $34,124 $29,540 D. $31,832 Question 32 12.5 points Save Answer The management at Orange Corporation is considering the following three investment projects (Ignore income taxes) Description Investment required Present value of cash inflows Project X $25,750 $28,700 Project Y $57,800 $66,290 Project Z $74,300 $80,450 Rank the projects according to the profitability index, from most profitable to least profitable. O A. Project Y, Project X, Project Z O B. Project Y, Project Z, Project X oc. Project Z, Project Y, Project X O d. Project X, Project Z, Project Y Question 34 12.5 points Save Answer The management at Quarter Corporation is investigating purchasing equipment that would increase sales revenues by $462,000 per year and cash operating expenses by $336,500 per year. The equipment would cost $350,000 and have a 10 year life with no salvage value. Quarter Corporation uses straight-line depreciation for all fixed assets. The simple rate of return on the investment is closest to (ignore income taxes): 35.86% A. 45.86% B. O c. 25.86% 19.59% D Question 35 12.5 points Save Answer Incredible Corporation is considering a project that would require an investment of $75,000. No other cash outflows would be involved. The present value of the cash inflows would be $93,450. The profitability index of the project is closest to (ignore income taxes): OA 0.25 OB. 0.80 O c 1.25 OD. 0.20 > A Click Submit to complete this assessment. Question 35 of 35