7. (TCO 10) Assume your goal in life is to retire with $1.5 million. How much would you need to save at the end of each year if interest rates average 5% and you have a 25-year work life? (Points : 5) $33,754 $24,555 $27,798 $31,429

Question 8. 8. (TCO 10) The net-present-value method focuses on (Points : 5)

cash inflows. accrual-accounting net income. cash outflows. both cash inflows and cash outflows.

Question 9. 9. (TCO 10) An important advantage of the net-present-value method of capital budgeting over the internal rate-of-return method is (Points : 5)

the net present value method is expressed as a percentage. the net present values of individual projects can be added to determine the effects of accepting a combination of projects. there is no advantage. Both A and B are correct.

Question 10. 10. (TCO 10) Shirt Company wants to purchase a new cutting machine for its sewing plant. The investment is expected to generate annual cash inflows of $300,000. The required rate of return is 12% and the current machine is expected to last for 4 years. What is the maximum dollar amount Shirt Company would be willing to spend for the machine, assuming its life is also 4 years? Income taxes are not considered. (Points : 5)

$507,000 $911,100 $791,740 $720,600