1.Lara Technologies is considering a total cash outlay of $223,000 for the purchase of land, which it could lease for $39,280 per year. If alternative investments are available that yield a 16% return, the opportunity cost of the purchase of the land is

a. $39,280

b. $74,960

c. $3,600

d. $35,680

2.

Heidi Company is considering the acquisition of a machine that costs $485,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $142,000, and annual operating income of $82,865. The estimated cash payback period for the machine is (round to one decimal point)?

a. 3.4 years

b. 5.9 years

c. 4.0 years

d. 6.5 years