13. (a) What is the after tax net present value? $ 7,485. (b) $10,000. (c) $ 57,485. (d) $(28,085). The payback period is a capital budgeting technique that measures the: Economic life of a project. (b) Profitability of a project. (c) Net cash flow from the project. (d) Recovery of the original investment in the project. (a) On January 1, 20X3, the Nectarine Company purchased a new machine for $520,000 with a useful life of eight years and no salvage value. The machine will be depreciated using the straight line method and it is expected to produce annual after tax cash flows of $120,000. Nectarine uses a 14% discount rate to evaluate all of its capital investment projects. What is the net present value (NPV) for the new machine? (a) $ 36,664. (b) $ 94,848. $182,291. (d) $556,664. 16. Which of the following capital budgeting methods does not take into account the time value of money? (a) Accounting rate of return. (b) Cash payback period. Both (a) and (b). (d) Neither (a) nor (b)