Which of the following would be included in net income but not in annual cash flows?

Sales revenue

Depreciation

Initial investment

Direct labor

Iron, Inc., which has a hurdle rate of 10%, is considering three different independent investment opportunities. Each project has a five-year life. The annual cash flows and initial investment for each of the projects are as follows: (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Do not round intermediate calculations. Round your final answer to the nearest hundred.)

	Project A			Project B			Project C
Annual cash flows	$	79,150		$	65,950		$	72,540
Initial investment		150,000			105,000			140,000

In what order should Iron prioritize investment in the projects?

A, C, B

B, C, A

A, B, C

B, A, C

You are saving for a car that costs $28,000 that you hope to purchase in five years. How much will you need to deposit today in a savings account that earns 8%, compounded annually, to withdraw enough for the purchase? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest whole dollar amount.)

$16,800

$19,057

$25,760

$41,140