MedTronic hires Catherine to work as a mechanical engineer, designing and testing medical devices and equipment. "Look," the HR hiring manager explains, "We can only pay you a salary of $62,000 per year. But if business is good a year from now, and you're still here, I'm sure we can pay you a healthy bonus." After Catherine completes her first year with MedTronic, she asks her boss when she will receive her bonus. Her boss informs her that she will not be receiving one. If Catherine sues MedTronic for failure to pay her the bonus, she will win her suit for breach of contract. 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: