Use the following to answer questions 91-92: (Ignore income taxes in this problem.) Lambert Manufacturing has $100,000 to invest in either Project A or Project B. The following data are available on these projects: Cost of equipment needed now........... Working capital investment needed now. Annual cash operating inflows............ Salvage value of equipment in 6 years.......... 91. The net present value of Project A is: A) $51,000 B) $60,120 C) $55,560 D) $94,450 Project A Project B $60,000 $100,000 $40,000 $35,000 Both projects will have a useful life of 6 years. At the end of 6 years, the working capital investment will be released for use elsewhere. Lambert's required rate of return is 14%. The company uses the total cost approach to evaluating alternatives. Answer: B Level: Medium LO: 1 92. The net present value of Project B is: A) $90,355 B) $76,115 C) $36,115 D) $54,355 Answer: D Level: Medium LO: 1 $40,000 $10,000

Use the following to answer questions 91-92: (Ignore income taxes in this problem.) Lambert Manufacturing has $100,000 to invest in either Project A or Project B. The following data are available on these projects: Both projects will have a useful life of 6 years. At the end of 6 years, the working capital investment will be released for use elsewhere. Lambert's required rate of return is 14%. The company uses the total cost approach to evaluating alternatives. 91. The net present value of Project A is: A) $51,000 B) $60,120 C) $55,560 D) $94,450 Answer: B Level: Medium LO: 1 92. The net present value of Project B is: A) $90,355 B) $76,115 C) $36,115 D) $54,355 Use the following to answer questions 91-92: (Ignore income taxes in this problem.) Lambert Manufacturing has $100,000 to invest in either Project A or Project B. The following data are available on these projects: Both projects will have a useful life of 6 years. At the end of 6 years, the working capital investment will be released for use elsewhere. Lambert's required rate of return is 14%. The company uses the total cost approach to evaluating alternatives. 91. The net present value of Project A is: A) $51,000 B) $60,120 C) $55,560 D) $94,450 Answer: B Level: Medium LO: 1 92. The net present value of Project B is: A) $90,355 B) $76,115 C) $36,115 D) $54,355 Answer: D Level: Medium LO: 1