69) The following details are provided by a manufacturing company:

	Product line
Investment	$1,100,000
Useful life	12 years
Estimated annual net cash inflows for first year	$400,000
Estimated annual net cash inflows for second year	$390,000
Estimated annual net cash inflows for next ten years	$380,000
Residual value	$70,000
Depreciation method	Straight-line
Required rate of return	14%

Calculate the payback period for the investment. (Round your answer to two decimal places.)

A) 2.75 years

B) 2.82 years

C) 2.55 years

D) 2.77 years

80) Discounted cash flow methods, such as net present value and internal rate of return, ________.

A) use simple interest calculations

B) use net income amounts rather than cash flows

C) focus on the payback period

D) consider discounted cash flows

81) Howard Consumer Products has a small car division that operates as a profit center. Below is a partially completed responsibility report for the first quarter. Complete the responsibility report. (Round percentages to one decimal place.)

Howard Consumer Products

Responsibility Report

Product Type	Actual Results	Flexible Budget	Flexible Budget Variance (F or U)	Sales Volume Variance
Sales Revenue	$688,200	$700,000
Variable Expense	309,000	320,000
Contribution Margin
Traceable Fixed Expense	371,000	369,000
Divisional Segment Margin