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Assume the following information for all of the questions in this assignment. TOM's Tomatoes and Herbs, LLC is considering investing in two alternative projects to improve the processing and packaging of TOM's Old World Spaghetti Sauce. Investment A has a lifespan of 10 years and initial costs of $50,000. Investment B has a lifespan of 7 years and initial costs of $35,000. TOM's Tomatoes and Herbs, LLC assumes a 5 percent discount rate on potential investments. Investment A Projected After-Tax Benefits per Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 $2,000 $4,000 $5,000 $8,000 $10,000 $10,000 $8,000 $6,000 $4,000 $2,000 Investment B Projected After-Tax Benefits per Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $9,500 $8,500 $7,500 $6,500 $5,500 $4,250 Year 7 $3,250 1) What is the Payback period of each potential investment by TOM's Tomatoes and Herbs, LLC? Round to the nearest tenth. Investment A Investment B: 2) If TOM's Tomatoes and Herbs, LLC has a required Payback period of 5 years, which project would be chosen and why? 3) Calculate annual depreciation for each investment using the straight line depreciation method. The salvage value for Investment A is $5,000 and for Investment B, the salvage value is $3,500 Annual Depreciation for Investment A. Annual Depreciation for Investment B

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