31 Poe Company is considering the purchase of new equipment costing $84,000. The projected annual cash inflows are $34,200, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of $1 and present value of an annuity of $1 for different periods is presented below. Compute the net present value of the machine. Periods 10 points 1 Present Value of $1 at 10% 0.9091 0.8264 0.7513 0.6830 Present Value of an Annuity of $1 at 10% 0.9091 1.7355 2.4869 3.1699 8 03:39:46 2 3 4 eBook Multiple Choice Ask $(24,411). O O $24,411 o $41,843. O $12,140 $(12,140) 30 Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.40 per unit. Bluebird currently produces and sells 75,000 units at $6.40 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler's name and would not affect Bluebird's sales through its normal channels. Production costs for these units are $3.60 per unit, which includes $1.95 variable cost and $1.65 fixed cost. If Bluebird accepts this additional business, the effect on net income will be: 10 points Multiple Choice 8 03:39:51 $29.250 increase. eBook $18,000 decrease. Ask $36.000 increase $29,250 decrease. O $6,750 increase. Pinkin Inc. needs to determine a price for a new phone model. Pinkin desires a 20% markup on the total cost of the phone. Pinkin expects to sell 49,000 phones. Additional information is as follows: 29 10 points Variable product cost per unit Variable administrative cost per unit Total fixed overhead Total fixed administrative $ 80 67 109,000 87,000 X 03:39:57 Using the total cost method what price should Pinkin charge? eBook Multiple Choice Ask O $181.20 O $172.07 $168.55 O $180.00 a O $151.07