The expected average rate of return for a proposed investment of $635,300 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total income of $344,120 for the 4 years is (round to two decimal places) a. 13.54% b. 0.54% c. 1.08% d. 27.08% Carmen Co. can further process Product J to produce Product D. Product 3 is currently selling for $22.55 per pound and costs $15.60 per pound to produce. Product D would sell for $44.05 per pound and would require an additional cost of $9.60 per pound to produce. The differential cost of producing Product D is a. $9.60 per pound Ob. $11.52 per pound c. $5.76 per pound d. $7.68 per pound Project A requires an original investment of $54,200. The project will yield cash flows of $15,400 per year for 4 years. Project B has a computed net present value of $3,750 over a 4-year life. Project A could be sold at the end of 4 years for a price of $17,200. Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 in 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 34 2.673 2.487 2.402 3.465 3.170 in 5 4.212 3.791 3.037 3.605 Use the tables above. a. Determine the net present value of Project A over a 4-year life with salvage value assuming a minimum rate of return of 12%. Round your answer to two decimal places. b. Which project provides the greatest net present value? Hayden Company is considering the acquisition of a machine that costs $339,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $98,000, and annual operating income of $83,300. The estimated cash payback period for the machine is (round to one decimal place) a. 5.2 years b. 4.1 years c. 1.2 years Od. 3.5 years Grace Co. can further process Product B to produce Product C. Product B is currently selling for $60 per pound and costs $38 per pound to produce. Product C would sell for $95 per pound and would require an additional cost of $13 per pound to produce. The differential revenue of producing and selling Product C is a. $35 per pound b. $95 per pound c. $60 per pound d. $38 per pound