A company is considering the purchase of new equipment for $60,000. The projected annual net cash flows are $24,500. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 10% return on investment. The present value of an annuity of $1 for various periods follows: Period 1 Present value of an annuity of $1 at 10% 0.9091 1.7355 2.4869 2 3 What is the net present value of this machine assuming all cash flows occur at year-end? Vextra Corporation is considering the purchase of new equipment costing $40,000. The projected annual cash inflow is $12,000, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Vextra requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows: Periods 1 2 12% 0.8929 1.6901 2.4018 3.0373 3 4 What is the net present value of the machine? Park Co. is considering an investment that requires immediate payment of $36,500 and provides expected cash inflows of $13,600 annually for four years. What is the investment's payback period? Payback Period Choose Numerator: Choose Denominator: Payback Period = Payback period 0 Peng Company is considering an investment expected to generate an average net income after taxes of $3,000 for three years. The investment costs $58,800 and has an estimated $10,200 salvage value. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return Accounting rate of return