1) ABC, Inc purchases equipment for $58,170. The equipment will be depreciated over 6 years with no residual value. ABCs annual net income for the year will be $90,150. ABC's annual cash flows will be $_________

2)

You deposited $14,300 in a savings account. The account will earn 8 percent annual compound interest, which will be added to the fund balance at the end of each year.

Factors to use for n=10, I =8% (DO NOT USE ANY OTHER FACTORS OR EQUATIONS)

Present Value of $1 0.46319 Present Value of an Annuity of $1 6.71008

Future Value of $1 2.15892

Future Value of an Annuity of $1 14.48656

What is the total interest earned for the 10 years?

3)

ABC, Inc is considering the purchase of some new equipment that costs $218,810. The new equipment is expected to increase revenues by $83,100 annually. Cash expenses are expected to be $58,100 and depreciation expense is $10,800. The payback on this equipment is ____years.

Enter your answer as a whole number rounded to 2 decimal places.

4) ABC, Inc purchased new equipment for $58,100. The new equipment would save on operating costs over the next 5 years as follows: $15,800 in year 1; $13,500 in year 2; $14,300 in year 3; $19,300 in year 4; and $12,400 in year 5. The payback period for the new equipment is ______ years. Enter your answer rounded to 2 decimals