20 F )oints An investment center of Finch Corporation shows an operating income of $6,608 on total operating assets of $56,000. Required Compute the return on investment. (Round your answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) 0.00 % Larry Mattingly turned 20 years old today. His grandfather had established a trust fund that will pay him $84,000 on his next birthday. However, Larry needs money today to start his college education, and his father is willing to help. Mr. Mattingly has agreed to give Larry the present value of the $84,000 future cash inflow, assuming a 10 percent rate of return. (PV of $1 and PVA of $1) (Use appropriate factorls) from the tables provided.) Required a. Determine the amount of cash that Larry Mattingly's father should give him. (Round your final answer to the nearest whole dollar value.) i_; Fanning Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different used airplanes. The first airplane is expected to cost $14,950,000; it will enable the company to increase its annual cash inflow by $6,500,000 per year. The plane is expected to have a useful life of five years and no salvage value. The second plane costs 3 - $40,320,000; it will enable the company to increase annual cash flow by $9,600,000 per year. This plane has an eight-year useful life and a zero salvage value. Required a. Determine the payback period for each investment alternative and identify the alternative Fanning should accept if the decision is based on the payback approach. (Round your answers to 1 decimal place.) Payback Period a-1. Alternative 1 (First plane) years Alternative 2 (Second plane) years a-2. Fanning should accept 18 Jordan Company has an opportunity to purchase a forklift to use in its heavy equipment rental business. The forklift would be leased on an annual basis during its first two years of operation. Thereafter, it would be leased to the general public on demand. Jordan would sell it at the end of the fifth year of its useful life. The expected cash inflows and outflows follow: 15 points Year Nature of Item Cash Inflow Cash Outflow Year 1 Purchase price $ 89, 600 Year 1 Revenue $ 34, 500 Year 2 Revenue 34 , 500 Year WN Revenue 29, 500 eBook Year 3 Major overhaul 8,900 Year 4 Revenue 20, 500 Year 5 Revenue 18, 500 Year 5 Salvage value 7,700 Hint Required Print a.&b. Determine the payback period using the accumulated and average cash flows approaches. (Round your answers to 1 decimal place.) References Payback period (accumulated cash flows) years Payback period (average cash flows) years