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I, Inc., is considering the purchase of a tractor-trailer that would cost $281,656, have a useful life of 7 years, and no salvage value. The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $76,000 per year. The internal rate of return on the investment in the tractor-trailer is closest to A) 16% B) 18% C) 21% D) 19% 27. Given the following data for an equipment investment Cost of equipment $48,680 $10,000 1096 Annual cash inflows. Internal rate of return.. The life of the equipment must be A) it is impossible to determine from the data given B) 5 years C) 6 years D) 7 years 28. A corporation is considering a project that would require an investment of $48,000. No other cash outflows would be involved. The present value of the cash inflows would be $51,840. The profitability index of the project is closest to: A) 0.07 B) 0.08 C) 0.92 D) 1.08 29. A corporation is considering several investment proposals, as shown below: Investment Proposal $80,000 $100,000 $60,000 $75,000 $96,000 $150,000 $84,000 $120,000 Investment required Present value of future net cash flows...... Net present value f the project proftability index is used, the ranking of the projects from most to least profitable would be: A) D, B, C, A B) B, D, C, A C) B, D, A, C D)A, C, B, D

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