19. Heidi Company is considering the acquisition of a machine that costs $420,000. The machine is expected to have auseful life of 6 years, a negligible residual value, an annual net cash flow of $120,000, and annual operating income of $83,721. What is the estimated cash payback period for the machine?

a. 3.5 years

b. 5 years

c. 5.1 years

d. 4 years

20. The management of Charlton Corporation is considering the purchase of a new machine costing $380,000. Thecompany's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of thisinvestment:

Year	Income from Operations	Net Cash Flow
1	$20,000	$95,000
2	20,000	95,000
3	20,000	95,000
4	20,000	95,000
5	20,000	95,000

The cash payback period for this investment is

a. 4 years

b. 5 years

c. 19 years

d. 3.3 years

21. When several alternative investment proposals of the same amount are being considered, the one with the largest net present value is the most desirable. If the alternative proposals involve different amounts of investment, it is useful to prepare a relative ranking of the proposals by using a(n)

a. average rate of return index

b. consumer price index

c. present value index

d. price-level index

22. By converting dollars to be received in the future into current dollars, the present value methods take intoconsideration that money

a. has an international rate of exchange

b. is the language of business

c. is the measure of assets, liabilities, and stockholders' equity on financial statements

d. has a time value