19. A piece of equipment costs $43,000, and is expected to generate $9,500 of annual cash revenues and $1,700 of annual cash expenses. The disposal value at the end of the estimated 8-year life is $3,000. Ignoring income taxes, the payback period is:

4.53 years.

5.13 years.

5.51 years.

8.31 years.

None of these.

20. Paige Company is contemplating the acquisition of a machine that costs $53,000 and promises to reduce annual cash operating costs by $12,000 over each of the next 5 years. Which of the following is a proper way to evaluate this investment if the company desires a 16% return on all investments? (Round PV factors to 3 decimal places.)

$53,000 vs. $60,000 3.274.

$53,000 vs. $60,000 0.476.

$53,000 vs. $12,000 3.274.

$53,000 vs. $12,000 5.

$53,000 0.862 vs. $12,000 3.274.