Scott Smith just bought a new "StreamLink" machine which will be depreciated on a straight-line basis to a book value of $37,000 at the end of its four- year life. During the first two years, the net income associated with the machine is expected to be $13,900 and $17,400, respectively. During the last two years, the net income associated with the equipment is expected to be $22,000 and $13,800, respectively. What is the average-accounting return associated with the "StreamLink" machine? Please note that Scott paid $130,000 for the machine. Multiple Choice 23.67% 21.52% a O 20.09% O 10.32% 25.81% Former Green Bay Packers defensive tackle, Don Davey, is considering opening a Firehouse Sub Shop in Wauwatosa, Wisconsin. The new Fireside Sub Shop will require new sandwich-grilling equipment costing $601,000 that would be depreciated on a straight-line basis to zero over the 6-year life of the project. The grilling equipment will be salvaged for $183,000 at the end of the project. The Sub Shop project requires an initial investment of $42,500 in net working capital, which will be recovered at the end of the project. The tax rate is 40%. What is the Firehouse Sub Shop project's IRR if it is expected to generate an annual operating cash flow of $154,200? Multiple Choice 12.64% O 16.72% O 14.33% 16.28% O o 15.31% From his luxury food truck, Chef Timon Balloo plans to sell small Poke bowls for $10.70 and large Poke bowls for $23.70. The variable cost per unit is $5.15 for the small Poke bowls and $11.30 for the large bowls. Chef Balloo envisions annual sales of 2,700 small bowls and 1,730 large Poke bowls. What is the annual operating cash flow if annual fixed costs will be $2,120 and the depreciation expense $1,000? Note: Timon Balloo's tax rate is 40%. Multiple Choice $22,262 O $14,127 O $20,590 O $20,990 O O $23,153