34.)

Newport 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 $271,000. The equipment will have an initial cost of $2,439,000 and have a 8 year life. There is no salvage value for the equipment. What is the payback period?

0.89 years

9.00 years

4.24 years

8.00 years

35.)

Byron 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 $111,000. The equipment will have an initial cost of $475,000 and have a 5 year life. The salvage value of the equipment is estimated to be $79,000. If the hurdle rate is 10%, what is the approximate net present value? Ignore income taxes. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Round your PV factors to 4 decimal places and final answer to the nearest dollar amount.)

zero

positive $79,000

negative $5,170

positive $475,000