Rachel's Repairs, Inc. is considering renting a new shop. The landlord has offered a number of alternatives for paying the rent. The present value factors at the company's rate of return are as follows: Period 1 2 3 Present Value Factor 0.90909 0.82645 0.75131 The landlord offered a 2-year lease with $20,000 to be paid for rent at the end of each year. The present value of rent payments over the life of the lease is: Select one: A. $33,208 B. $34,711 C. $20,000 D. $40,000 The management of O'Malley Enterprises is currently evaluating the following investment proposal: Time 0 Year 1 Year 2 Year 3 Year 4 Initial investment Net operating cash flows $300,000 $100,000 $100,000 $100,000 $100,000 Present Value of an Annuity of $1 Period 8% 10% 12% 14% 16% 18% 1 0.82593 0.90909 0.89286 0.87719 0.86207 0.84746 2 1.78326 1.73554 1.69005 1.64666 1.60523 1.56564 3 2.57710 2.48685 2.40183 2.32163 2.24589 2.17427 3.31213 3.16987 3.03735 2.91371 2.79818 2.69006 The proposal's payback period and proposal's internal rate of return (IRR) approximate: Select one: A. Payback period 4 years, IRR 12 percent B. Payback period 3 years, IRR 12 percent C. Payback period 3 years, IRR 8 percent D. Payback period 3.5 years, IRR 16 percent