1)Warren Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $42,500. The equipment will have an initial cost of $127,000 and have an 8 year life and no salvage value of the equipment.

What is the payback period? ____________Roundyour answer 2 decimals

2)Tina Company manufactures pans. Below is the information related to its direct material costs:

Standard hours required per pan1.9

Standard cost per hour$15.3

Actual amount of hours perpan1.3

Actual cost per hour$14.9

Actual number of pans produced and sold1,792

Tina's direct laborspendingvariance is $__________

Indicate the amount and whether it isFavorable orUnfavorable by placing F or U by amount,do not skip a space and do not use $ in your answer. For example, if your answer is $1,000 favorable, answer1000F

3)The standard price of materials is $4.2 per pound and the standard quantity allowed for actual output is 5,170 pounds. If the actual quantity purchased and used was 5,650 pounds, and the actual price per pound was $3.5, the direct materials price variance is ___________

Indicate whether the variance is F (favorable) or U (Unfavorable) by placing the letter next to the amount. For example, if your answer is 1,000 Favorable, answer1000F, Do not use a space between the amount and the letter.Show your answer as an absolute number (no negative signs)

4)Malone Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $52,090. The equipment will have an initial cost of $182,250 and have a 5-year life. The salvage value of the equipment is estimated to be $20,000.

Factors to use for n=5, I =10% (DO NOT USE ANY OTHER FACTORS OR EQUATIONS)

Present Value of an Annuity of $13.7908

Present Value of $10.6209

Future Value of an Annuity of $16.1051

Future Value of $11.6105

If the hurdle rate is 10%, what is the approximate net present value? Ignore income taxes.