The following information pertains to Questions 1725 : Williams Corporation has an opportunity to invest in one of two projects for construction of a new Tennis Club. Club A requires a $240,000 investment for new machinery with a 4 -year useful life and no salvage value. Club B also requires a $240,000 investment for new machinery with a 3-year useful life and no salvage value. (Note: The useful life of each club is the project's life.) Each Tennis Club project yields the following predicted annual results. Williams Corporation uses straight-line depreciation, and cash flows occur evenly throughout each year. Williams hurdle rate is 8% and the income tax rate is 30%. 17. What is the expected annual net income for Club A? a. $117,000 b. $81,900 c. $57,000 d. $39,900 18. What is the expected annual net income for Club B? a. $117,000 b. $81,900 c. $37,000 d. $25,900 19. What is the expected annual net cash flow for Club A? a. $117,000 b. $99,900 c. $119,900 d. $81,900 20. What is the expected annual net cash flow for Club B? a. $117,000 b. $85,900 c. $105,900 d. $81,900 21. What is the payback period for Club A? (Round to 2 decimal places) a. 2.40 years b. 2.05 years c. 6.02 years d. 2.27 years 22. What is the payback period for Club B? (Round to 2 decimal places) a. 2.27 years b. 2.40 years c. 9.27 years d. 2.05 years 23. Assuming cash flows occur at each year-end, what is the NPV for Club A? (Round to the nearest $1, pick the best answer) a. $90,879 b. $330,879 c. $432,597 d. $147,516 e. $17,452 24. Assuming cash flows occur at each year-end, what is the NPV for Club B? (Round to the nearest $1, select the best answer) a. $32,915 b. $272,915 c. $503,386 d. $17,452 e. $110,754 25. Which Club would you recommend the Williams Corporation should invest in, and why? a. Club A, because it has the higher NPV b. Club B, because it has the higher NPV c. Club A, because the payback period is shorter d. Club B, because the expected annual net income is higher