1)A company plans to sell 220 units. The selling price per unit is $24. There are 50 units in the beginning inventory, and the company would like to have 20 units in ending inventory. How many units should be produced for the coming period?

a)250

b)200

c)230

d)220

e)None of these

2)A machine costing $1,000 produces total cash inflows of $1,400 over 4 years. Determine the payback period given the following cash inflows:

YearAfter tax cash inflowscumulative cash flows

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1$400$400

2300700

35001,200

42501,400

a)2years

b)2.60 years

c)2.86 years

d)3 years