5.

Abba, Inc is considering the purchase of some new equipment that costs $207,700. The new equipment is expected to increase revenues by $80,900 annually. Cash expenses are expected to be $56,400 and depreciation expense is $11,000. The payback on this equipment is ____years.

Enter your answer as a whole number rounded to 2 decimal places.

6.

You purchase a home for $207,000 that you expect to appreciate 6% in value on an annual basis. How much will the home be worth in ten years?

Factors to use for n=10, I =6% (DO NOT USE ANY OTHER FACTORS OR EQUATIONS) Present Value of $1 0.55839

Present Value of an Annuity of $1 7.36009 Future Value of $1 1.79085 Future Value of an Annuity of $1 13.18079

7.

Garfield Inc is considering a new project that requires an initial investment of $39,090 and will generate a net income of $5,168 per year, if the projects profitability index is 2.3, the present value of the projects future cash flows is $________________ Round to the nearest dollar.

8.

Warren Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $36,300. The equipment will have an initial cost of $120,500 and have a 10 year life and no salvage value of the equipment.

What is the payback period? ____________Round your answer 2 decimals

9.

Parker, Inc purchased new equipment for $55,500. The new equipment would save on operating costs over the next 5 years as follows: $15,700 in year 1; $12,800 in year 2; $14,500 in year 3; $22,100 in year 4; and $12,500 in year 5. The payback period for the new equipment is ______ years. Enter your answer rounded to 2 decimals

Please help with these questions and their process. Appreciate it :)