8. The following six months of data were collected on electricity cost and the number of machine hours in a factory. Month Electricity Cost Machine Hours June 25,160 (lo) 4,500 (10) July 26,170 4,810 August 27.250 5,120 September 26,680 5,010 October November 27,950 (hi) 27.500 5,430 (hi) 5,190 Student ID #: Using the high-low method, the variable rate is calculated to be $3.00 per machine hour: ($27,950-$25,160)/(5,430-4,500)-$3.00. Using the high-low method, the fixed cost of electricity is calculated to be $11,660: $27,950 ($3.00 5,430) - $11,660. Using this information, construct a Cost Equation for electricity. Explain each element of the equation. Using this equation, estimate the total electricity cost for December, given that the estimated number of machine hours in December will be 5,300. 9. Pate Company is evaluating a project requiring an initial capital expenditure of $806,250. The project has an estimated life of 4 years and no salvage value. The yearly estimated net income and net cash flow from the project is as follows Year Net Cash Flow/Income 0 (806,250) 1 575,00 2 502,000 3 409,500 350,500 4 The company's minimum desired rate of return (cost of capital) is 12% REQUIRED: Calculate the following: (A) Payback Period; (B) Accounting Rate of Return; (C) Present Value of future Cash Flows and NPV of the Project; (D) Internal Rate of Return; (E) Profitability Index