Roberts Hardware is adding a new product line that will require an investment of $1,512,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $310,000 the first year, $300,000 the second year, and $260,000 each year thereafter for eight years. Assume the project has no residual value. Compute the ARR for the investment. Round to two places. Select the formula, then enter the amounts to calculate the ARR (accounting rate of return) for the new product line. (Round ARR to the nearest hundredth percent [two decimal places), X.XX%.) Average annual operating income Average amount invested ARR = % Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose): 1. $7,550 per year at the end of each of the next eight years 2. $49,950 (lump sum) now 3. $100,050 (lump sum) eight years from now (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. Calculate the present value of each scenario using X.XXX. Round the present value to the nearest whole dollar.) 8% discount rate. Which scenario yields the highest present value? (Round the factors to three decimal places, Scenario 1, 8% discount rate, Present value = Requirements 1. Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present value? Round to the nearest whole dollar 2. Would your preference change if you used a 10% discount rate? Print Done