Employees at the eastern eagle newspaper are paid according to the hay system. ralph and steve do the same type of work and report to the same supervisor. ralph has worked at the newspaper for 14 years while this is steve's third year. the supervisor believes steve is the more enthusiastic and hard-working of the two. under the hay system, steve will probably earn more than ralph.

a. true
b. false

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: