Upper Darby following information is a be $150,000. Th vailable on the investment. The cost of the machine will e annual cost savings if the new machine is acquired will be required value of Park Department is considering a new capital investment. The $40,000. The machine will have a 5-year life, at which time the terminal disposal value is expected to be $20,000. If Upper Darby Park Department has a rate ofreturn of 10%, which of the following is closest to the net present the project? a. $1,632 b. $12,418 C. $14,060 d. $150,000 The Zeron Corporation has recently purchased a new machine for its factory operations at a cost of $921,250. The investment is expected to generate $250,000 in annual cash flows for a period of six years. The required rate of return is 14%. The old machine has a remaining life of six years. The new machine is expected to have zero value at the end of the six-year period. The disposal value of the old machine at the time of replacement is zero. What is the internal rate of return? a. 15% b. 16% c.17% d. 18% Investment A requires a net investment of $800,000. The required rate of return is 12% for the four-year annuity, what are the annual cash inflows if the net present value equals zero? (Rounded) a. $189,483 b. $263,418 c. $274,848 d. $295,733 An important advantage of the net present value method of capital budgeting over the internal rate-of-return method is: a. The net present value method is expressed as a percentage. b. The net present values of individual projects can be added to determine the effects of accepting a combination of projects. The internal rate of return is more accurate causing the NPV of the project to be irrelevant. The internal rate of return is easier to calculate. c. d