a) Boston Company is contemplating the purchase of a new machine on which the following information has been gathered: (10) Cost of the machine $38,900 Annual cash inflows expected $10,000 Salvage value $5,000 Life of the machine 6 years The company's discount rate is 16%, and the machine will be depreciated using the straight-line method. Given these data, calculate net present value of the investment. b) The Higgins Company has just purchased a piece of equipment at a cost of $120,000. This equipment will reduce operating costs by $40,000 each year for the next eight years. This equipment replaces old equipment that was sold for $8,000 cash. Calculate the payback period. (5) 23) a ) Orion Corporation is preparing a cash budget for the six months beginning January 1. Shown below are the company's expected collection pattern and the budgeted sales for the period.(10) Expected collection pattern: 65% collected in the month of sale 20% collected in the month after sale 10% collected in the second month after sale 4% collected in the third month after sale 1% uncollectible. Budgeted sales January $160,000 February 185,000 March 190,000 April 170,000 May 200,000 June 180,000 What would be the estimated total cash collections during April from sales and accounts receivable? b) Wallace, Inc. prepared the following budgeted data based on a sales forecast of $6,000,000 (5) Variable Fixed Direct materials $1,600,000 Direct labour 1,400,000 Factory overhead 600,000 $900,000 Selling expenses 240,000 360,000 Administrative expenses 60,000 140,000 Total $3,900,000 $1,400,000 What would be the amount of sales dollars at the break-even point