a:

b:

Corporation is considering purchasing equipment that costs $130,000 and is expected to provide the following cash inflows over its five-year useful life:

Year	Cash Inflow
1	$	28,000
2	$	32,000
3	$	34,000
4	$	36,000
5	$	19,000

What is the payback period of this investment project? (Rounded to the nearest year.)

An investment that costs $38,000 will produce annual cash flows of $12,720 for a period of 4 years. Given a desired rate of return of 7%, what will the investment generate? (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round your intermediate calculations. Round your answer to the nearest whole dollar.) Multiple Choice A positive net present value of $43,085. A negative net present value of $43,085. o A positive net present value of $5,085. o o A negative net present value of $5,085