1.Gateway Graphics is considering an investment in new printing equipment costing?$504,000. The equipment will be depreciated on a straight?line basis over a five?year life and is expected to generate net cash inflows of?$134,000 the first?year, $150,000 the second?year, and?$162,000 every year thereafter until the fifth year. What is the payback period for this?investment? The residual value is zero.?(Round your answer to two decimal?places.)

A.

4.43 years

B.

2.55 years

C.

3.36 years

D.

2.76 years

2.?______________ is a method to manage costs and profits by taking revenue at market price and subtracting the desired profit to determine target full product costs.??

A.

Target pricing

B.

Product?plus pricing

C.

Cost?plus pricing

D.

Product?plus costing

3.Companies do not need to consider the opportunity costs of rejecting certain projects in capital investment decision making.

4.

Assume you invest $6.500 per year at the end of each year at 10%. How much will you have at the end 014 years? Future Value of Ordinary Annuity of $1 : 8% 9% 10% 1 1.000 1.000 1.000 2 2.080 2.090 2.100 3 3.245 3.275 3.310 4 4.505 4.573 4.541 5 5.557 5.955 5.105 5 7.335 7.523 7.715 o A. $29,259 0 B. $29,725 0 0. $30,157 0 D. $21,515