4

parts

Which of the following equations can be used in certain situations to calculate the payback period? 25 Multiple Choice 01:23:23 Skipped (Annual net cash inflow Investment required) hurdle rate eBook (Investment required + Annual net cash inflow) hurdle rate Investment required + Annual net cash inflow Annual net cash inflow + Investment required 26 Assume that a company is considering purchasing a machine for $70,000 that will have a seven-year useful life and no salvage value. The machine will lower operating costs by $18,000 per year and increase sales volume by 1,000 units per year. The company earns a contribution margin of $3.00 per unit. The company's required rate of return is 17%. The internal rate of return for this investment is closest to 69 012 Multiple Choice spoed O 23% 25% 211 O a 195 27 Resume that you do thinking about starting your own small business. The equipment costs incurred to start the business would total $330,000. The equipment would have a 5-year useful life and a salvage value of $30.000 Aner analyzing all of the appropriate information, you estimated the project's financial viability as follows 03: 2 Net present value $34,081 Internal rate of return Payback period 3.01 years Simple rate of return 15 210 Sked . However, after funther consideration, you decide to revise the equipment's estimated salvage value from $25,000 to $35,000. Which of the following statements is false with respect to your revised estimate of the equipment's salvage value? Multiple Choice It will increase the projects internal rate of retum It will increase the project's not present value it wil decrease the project's payback period 28 Assume that a company purchased a new machine for $20,000 that has a salvage value of $2,000 at the end of its useful life of five years. The machine is expected to save the company $6,000 a year in cash operating costs for five years. The machine's internal rate of return is closest to 8 01:22:52 Multiple Choice Sped 17 19% O 15% 20%