Weston Corporation The Weston Corporation is analyzing projects A, B, and C as possible investment opportunities. Each of these projects has a useful life of five years. The following information has been obtained: Project Project Project A B C $630,00 $500,00 $480,00 0 0 0 $675,00 $520,00 $690,00 0 0 0 18% 14% 16% Initial investment required Present value of future cash inflows Internal rate of return Which of the following statements is correct? Please show calculations to support your choice. A. Project B is preferred over Project C according to the project profitability index. B. Project C is preferred over Project A according to the internal rate of return. C. Project A is preferred over Project C according to the project profitability index. D. Project B is preferred over Project C according to the internal rate of return. Rosenholm Corporation Rosenholm Corporation uses a discount rate of 18% in its capital budgeting. Partial analysis of an investment in automated equipment with a useful life of 5 years has thus far yielded a net present value of ($327,960). This analysis did not include any estimates of the intangible benefits of automating this process nor did it include any estimate of the salvage value of the equipment. a. Ignoring any salvage value, how large would the additional cash flow per year from the intangible benefits have to be to make the investment in the automated equipment financially attractive? b. Ignoring any cash flows from intangible benefits, how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive?

Weston Corporation The Weston Corporation is analyzing projects A, B, and C as possible investment opportunities. Each Which of the following statements is correct? Please show calculations to support your choice. A. Project B is preferred over Project C according to the project profitability index. B. Project C is preferred over Project A according to the internal rate of return. C. Project A is preferred over Project C according to the project profitability index. D. Project B is preferred over Project C according to the internal rate of return. Rosenholm Corporation Rosenholm Corporation uses a discount rate of 18% in its capital budgeting. Partial analysis of an investment in automated equipment with a useful life of 5 years has thus far yielded a net present value of ($327,960). This analysis did not include any estimates of the intangible benefits of automating this process nor did it include any estimate of the salvage value of the equipment. a. Ignoring any salvage value, how large would the additional cash flow per year from the intangible benefits have to be to make the investment in the automated equipment financially attractive? b. Ignoring any cash flows from intangible benefits, how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive? Weston Corporation The Weston Corporation is analyzing projects A, B, and C as possible investment opportunities. Each Which of the following statements is correct? Please show calculations to support your choice. A. Project B is preferred over Project C according to the project profitability index. B. Project C is preferred over Project A according to the internal rate of return. C. Project A is preferred over Project C according to the project profitability index. D. Project B is preferred over Project C according to the internal rate of return. Rosenholm Corporation Rosenholm Corporation uses a discount rate of 18% in its capital budgeting. Partial analysis of an investment in automated equipment with a useful life of 5 years has thus far yielded a net present value of ($327,960). This analysis did not include any estimates of the intangible benefits of automating this process nor did it include any estimate of the salvage value of the equipment. a. Ignoring any salvage value, how large would the additional cash flow per year from the intangible benefits have to be to make the investment in the automated equipment financially attractive? b. Ignoring any cash flows from intangible benefits, how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive