25. Chee Corporation has gathered the following data on a proposed investment project: (Ignore income taxes in this problem.)

Investment required in equipment $680,000

Annual cash inflows $66,000

Salvage value $0

Life of the investment 20 years

Required rate of return 7%

The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment.

The payback period for the investment is closest to:

0.1 years 1.0 years 8.3 years 10.3 years

8. Data concerning Wang Corporations single product appear below:

Selling price per unit $350.00

Variable expense per unit $73.50

Fixed expense per month $178.330

The break-even in monthly dollar sales is closest to:

$227,000 $274,670 $179,330 $454,000