Scenario-JG SawmiliS To meet the high production demand, Jack Wilson-the owner of JG Sawmills-needs to invest in a frame saw. He has narrowed down to two choices: a double cut frame CZ84 saw with chipper and a HY-200 saw with double arbor bearings. The cost of CZ84 will be $91,000, whereas the cost of HY-200 will be $110,000. The salvage value of each type is $0 (zero) and both will have a useful life of 4 years. Data for Capital Budgeting Estimated cash flows and accounting profits for each saw type Double cut frame CZ84 saw HY-200 saw Years Cash Flows Accounting Profits Cash Flows Accounting Profits $(91,000) $(110,000) 1 $20,000 $13,000 $30,000 $20,000 $37,000 $21,000 $45,000 $33,000 $33,000 $41,000 3 $37,000 $21,000 $45,000 4 $42,000 $32,000 $50,000 What would James choose if he based his decision on the return on investment (ROI)? Multiple Choice He would choose HY-200 because it has a higher ROI of 0.48. He would choose CZ84 because it has a higher ROl of 0.58. He would choose HY-200 because it has a higher ROI of 0.58. He would choose CZ84 because it has a higher ROI of 0.48. < Prev 24 of 30 Next >