1.

S Corp. is considering an 20 year investment with a net present value of cash flows of -$21712 and an uncertain salvage value. What is the minimum salvage value the would make the investment attractive assuming a discount rate of 12% (20 year, 12% present value factor would be 0.104) Hint: See study guide

Round your answer to the nearest dollar.

2. Vex Corporation is considering three investment projects: A, B, C. Project A would require an investment of $28344, Project B of $60503, and Project C of $88490. No other cash outflows would be involved. The present value of the cash inflows would be $33903 for Project A, $68888 for Project B, and $98371 for Project C. Compute the project profitability for project B. Round your answer to 2 decimal places.

3.

R Company is studying a project that would have a ten-year life and would require an 674380 investment in equipment which has $131568 salvage value. The project would provide $90509 annual net operating income (including $50156 depreciation expense) for the life of the project. The company's required rate of return is 8%.

What is the payback period for this project? Round to the nearest year.