Mo, lu, and barb formed the mlb partnership by making investments of $76,500, $297,500, and $476,000, respectively. they predict annual partnership net income of $502,500 and are considering the following alternative plans of sharing income and loss: (a) equally; (b) in the ratio of their initial capital investments; or (c) salary allowances of $84,000 to mo, $63,000 to lu, and $95,000 to barb; interest allowances of 10% on their initial capital investments; and the remaining balance shared as follows: 20% to mo, 40% to lu, and 40% to barb.

Lambert manufacturing has $100,000 to invest in either project a or project b. the following data are available on these projects (ignore income taxes.): project a project b cost of equipment needed now $100,000 $60,000 working capital investment needed now - $40,000 annual cash operating inflows $40,000 $35,000 salvage value of equipment in 6 years $10,000 - both projects will have a useful life of 6 years and the total cost approach to net present value analysis. at the end of 6 years, the working capital investment will be released for use elsewhere. lambert's required rate of return is 14%. the net present value of project b is: