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2N-IN Corporation is considering investing $125,000 in a new piece of machinery that will generate net annual cash flows of $32,000 each year for the

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2N-IN Corporation is considering investing $125,000 in a new piece of machinery that will generate net annual cash flows of $32,000 each year for the next 5 years. The machine has a salvage value of $18,000 at the end of its 5 year useful life. 2N- IN's cost of capital and discount rate is 9%. Which of the following tables and criteria should we use to discount the net annual cash flows? PV of annuity table, n=1, i=9% PV of annuity table, n=5, i=9% PV of a single sum table, n=1, i=9% PV of annuity table, n=9, i=5% PV of a single sum table, n=5, i=9% Charlie is considering investing $710,000 in a new piece of machinery that will generate net annual cash flows of $225,000 each year for the next 5 years. The machine has a salvage value of $85,000 at the end of its 5 year useful life. Charlie's cost of capital and discount rate is 9%. Which of the following tables and criteria should we use to discount the salvage value of the equipment? PV of a single sum table, n=5, i=9% PV of annuity table, n=5, i=9% PV of annuity table, n=1, i=9% PV of a single sum table, n=9, i=5% PV of a single sum table, n=1, i=9% Determine the amount you must deposit today in a savings account that will compound interest at the rate of 4% at the end of each year for the next eight years, so that you will have a $22,600.00 balance eight years from today. $ 18,142.71 $ 12,825.00 O$ 26,853.85 $ 152,159.92 $ 16,513.59 November is considering investing $60,000 in a new piece of machinery that will generate net annual cash flows of $20,000 each year for the next 6 years. The machine has a salvage value of $4,000 at the end of its 6 year useful life. November's cost of capital and discount rate is 10%. What is the dollar amount that we would multiply times the factor found in the PV of an Annuity table? $ 20,000 $ 120,000 o $ 56,000 O$ 60,000 $ 4,000 Allspice Company has just signed a capitalizable lease contract for equipment that requires rental payments of $19,000 each, to be paid at the end of each of the next 5 years. The company's discount rate is 11%. What is the amount used to capitalize the leased equipment (i.e. the present value of the lease payments)? $ 70,222.10 $ 56,375.75.10 O$ 11,275.55 $ 351,110.50 $ 95,000.00

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