19.) (Ignore income taxes in this problem.) The following data pertain to an investment proposal: Cost of the investment $70,000 Annual cost savings $20,000 Estimated salvage value $8,000 Life of the project 5 years Discount rate 12%

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table.

The net present value of the proposed investment is closest to: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)

A. $6,636

B. $2,100

C.$4,536

D. $42,000

20.) The management of Urbine Corporation is considering the purchase of a machine that would cost $410,000 would last for 7 years, and would have no salvage value. The machine would reduce labor and other costs by $67,000 per year. The company requires a minimum pretax return of 7% on all investment projects. (Ignore income taxes in this problem.)

Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using tables.

The net present value of the proposed project is closest to: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)

A) $48,937

B) $8,937

C) $73,857

D) $24,017

24) (Ignore income taxes in this problem.) Baldock Inc. is considering the acquisition of a new machine that costs $458,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that would be produced by the machine are:

Incremental Net Operating Income/Incremental Net Cash Flows

Year 1 $66,000 $150,000

Year 2 $72,000 $150,000

Year 3 $83,000 $165,000

Year 4 $46,000 $148,000

Year 5 $88,000 $150,000

Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period of this investment is closest to:

A)2.0 years

B)5.0 years

C)4.0 years

D)3.0 years