A. A company is considering purchasing factory equipment that costs $640,000 and is estimated to have no salvage value at the end of its 8-year useful life. If the equipment is purchased, annual revenues are expected to be $180,000 and annual operating expenses exclusive of depreciation expense are expected to be $76,000. The straight- line method of depreciation would be used. The cash payback period on the equipment is A) 13.3 years. B) 8.0 years. C) 6.2 years. D) 3.1 years. B. Roger Industries is considering two capital investment proposals. Estimates regarding each project are provided below: Project XR8 Project AAA Initial investment $800,000 $1,200,000 Annual net income 40,000 84,000 Net annual cash inflow 200,000 284,000 Estimated useful life 5 years 6 years Salvage value The cash payback period for Project XR8 is A) 20 years. B) 10 years. C) 5 years. D) 4 years. Roger Industries is considering two capital investment proposals. Estimates regarding each project are provided below: Project XR8 Project AAA Initial investment $800,000 $1,200,000 Annual net income 40,000 84,000 Net annual cash inflow 200,000 284,000 Estimated useful life 5 years 6 years Salvage value 0 The net present value for Project AAA is A) $1,236,820. B) $365,824. C) $200,000. D) $36,820