1.The management of Lanzilotta Corporation is considering a project that would require an investment of $191,000 and would last for 6 years. The annual net operating income from the project would be $108,000, which includes depreciation of $21,000. The scrap value of the project's assets at the end of the project would be $26,200. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)

• A. 1.5 years
• B. 1.8 years
• C. 1.2 years
• D. 2.6 years

2.A company with $900,000 in operating assets is considering the purchase of a machine that costs $92,000 and which is expected to reduce operating costs by $24,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)

A. 37.5 years

B. 0.26 years

C. 9.8 years

D. 3.8 years

3.Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $26,000 and will have a 6-year useful life and a $5,500 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $33,500 per year. The cost of these prescriptions to the pharmacy will be about $28,000 per year. The pharmacy depreciates all assets using the straight-line method. The payback period for the auto is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)

A. 5.1 years

B. 5.7 years

C. 3.7 years

D. 4.7 years

4. Moates Corporation

\fJoetz Corporation has gathered the following data on a pro posed investment project {Ignore income tale-3.}; Investment required in equipment $31,533 Annual cash inflows $ 5,668 Salvage value of equipment $ 3 Life of the investment 15 years Required rate of return 13% The company uses straight-line depreciation on all equipment. Assume cash ows occur uniformly throughout a year except for The initial investment The simple rate of return for The investment {rounded to the nearest tenth of a percent} is: {Round your answer to 1 declrnul pineal Joetz Corporation has gathered the following data on a proposed investment project {Ignore income taxes}: Investment required in equipment $36,633 Annual cash inflows $ 8,463 Baluage value of equipment 3. (it Life of the investment 15 years Required rate of return 13% ' The company,r uses straig htIine depreciation on all equipment Assume cash ows occur unii'iuzirrnlzi.r through out a year except for the initiai investment. Click here to View Exhibit 123-1 and Exhibit 123-2. to determine the appropriate discount factor{s} using the tables provided. The internal rate of return ofthe investment is closest to: Moates Corporation has provided the following data concerning an investment project that it is considering: Initial investment $190,090 Annual cash flow $120, 090 per year Expected life of the project 4 years Discount rate 9% Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using the tables provided. The net present value of the project is closest to:\fOriental Corporation has gathered the following data on a proposed investment project; Investment in depreciable equipment $648,963 Annual net cash flows 1; 86,9133 Life of the equipment 23 years Salvage value 1' 3 Discount rate 9% ' The company uses straight- ne depreciation on all equipment Assume cash ows occur uniformly throughout a year except for the initial investment. The payback period for the investment would be: {Pound your ant-wot to 1 decimal pinch: Bau Long-Haul. Inc. is considering the purchase of a tra cLor-tlailer that would cost $313.30; would have a useful fe of 7 years. and would have no salvage value. The tractortrailer would he used in the company's hauling business. resulting in additional net cash inows of $83500 per year. The internal rate of return on the investment in the tractor-trailer is closest to (Ignore income taxes}: Click here to view E xhibit '231 and Exhibit 128-2. to determine the appropriate discount factor{s} using the tables provided. Perkins Corporation is considering several investment proposals, as shown below. Investment Proposal A B C D Investment required $148,090 $185,900 $111, 000 $138,750 Present value of future net cash flows $177, 600 $277, 500 $155, 400 $324, 030 If the project profitability index is used, the ranking of the projects from most to least profitable would be