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1) XYZ Company is considering investing in a project that requires an initial investment of $200,000 for some machinery. There will be net inflows of

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1) XYZ Company is considering investing in a project that requires an initial investment of $200,000 for some machinery. There will be net inflows of $50,000 for the first two years, $35,000 in years three and four, and $50,000 in year five. Find the accounting rate of return for the machine. 3) A project requires an initial investment of $200,000 and is expected to generate the following net cash inflows: PROJECT A Year 1:60,000 Year 2:60,000 Year 3:80,000 Year 4:30,000 Year 5:30,000 Required: Compute the Pay back Period if the minimum desired rate of return is 10%. PVIF .909,.826,.751,.680,.623

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