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19. The management of Penfold Corporation is considering the purchase of a machine that would...

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19. The management of Penfold Corporation is considering the purchase of a machine that would cost $440,000 and have a life of 7 years. The machine would reduce labor and other costs by $102,000 per year. The company requires a minimurm return of 16% on all investment projects. The present value annuity of $1 for 7 periods at 16% is 4.039. The net present value of the proposed project is closest to: A. $ 96,949. B. $274,000. C $(28,022) $(79,196). 20. Eddie Corporation is considering the following three investment projects: Investment required Project CProject D $41,000 $47,560 Project E $85,000 $36,000 Present value of cash inflows $39,960 $92,650 Rank the projects according to the profitability index, from most profitable to least profitable. D, C, E. E, D, C. D. E, C, D

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