1 A) Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $161,952, net annual cash flows $37,200, and present value factor of cash inflows for 10 years 4.66 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).) Determine the net present value, and indicate whether the investment should be made.

Net Present Value: $___________

The investment: should/should not be made.

1 B) Rihanna Company is considering purchasing new equipment for $395,200. It is expected that the equipment will produce net annual cash flows of $52,000 over its 10-year useful life. Annual depreciation will be $39,520. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.)

cash payback period ___________ years