A company is considering the purchase of new equipment for $48,000. The projected annual net cash flows are $20,100. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 11% return on investment. The present value of an annuity of 1 for various periods follows:

Periods	Present value of an annuity of 1 at 11%
1	0.9009
2	1.7125
3	2.4437

What is the net present value of this machine assuming all cash flows occur at year-end?

$16,000

$3,100

$1,118

$19,100

$46,675

If budgeted beginning inventory is $8,950, budgeted ending inventory is $10,180, and budgeted cost of goods sold is $10,910, budgeted purchases should be:

$9,680

$1,230

$12,140

$1,960

$730

Georgia, Inc. has collected the following data on one of its products. The direct materials price variance is:

Direct materials standard (3 lbs @ $2/lb)	$ 6 per finished unit
Total direct materials cost varianceunfavorable	$ 23,750
Actual direct materials used	120,000 lbs
Actual finished units produced	30,000 units

$36,250 favorable.

$60,000 unfavorable.

$23,750 unfavorable.

$55,750 favorable.

$36,250 unfavorable.