6 Assume that a company is considering buying a new plece of equipment for $250,000 that would have a useful life of five years and a salvage value of $34.000, The equipment would generate the following estimated annual revenues and expenses Revenues $ 120,000 Less operating expenses: Comissions $ 15,00 Insurance 5,000 Depreciation 43,200 Maintenance 30,eee 93,200 Net operating income $ 26,800 01207 Click here to view it.284 and Estiu 1282. to determine the appropriate discount factors using the tables provided Assuming a discount rate of 94%. what is the nel present value of this investment? 5795 56156267 Assume the following information for a capital budgeting proposal with a five your time horizon 7 $ 410,eee OU Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket costs $ 380,eee $ 130,000 $ 50,000 $ 40,00 Click here to view Ext 120.1 and Ext 128.2 to determine the appropriate chicount factions using the tables provided, The proposas internal rate of return is closest to Me Choice O 223 00 8 Assume that a company porchased a new machine for $24750 that has no Salvage value the machine is expected to save the company 56.000 a year in cash operating costs for seven years. The company also expects the machine to provide an intangible beets that are difficult to quantity Assuming the company's hurdle rates 24% the mum value of the intangle benefits that would be required to make the investment acceptable k dosest to: Click here to view Exhibit 200 and 1282. to determine the appropriate discount factors in the tables provided Me Choice OSUM O $2234 O 31204 Assume the following information for three Investment proposals 9 Investment required Present value of cash inflows Net present value Proposal $ 200,000) 220,000 $ 20,000 Proposal $ (255,60e) 315,000 $.se,eee Proposal 5 (350, eee) 420,00 $70,000 0937.41 Based on the profitabilty index, which of the following statements is true? Multiple Propeus cs piletorativ to ooooo O Proposal is buferable to prop Proposal Arts Proposal 11 Asume that company buy a new for $120,000 that hat ainete of six years and a $20.000 salvage value the machine wit reduce opened costs by 25.000 per year, What is the payback period for this investment? Che Ay