A company with $645,000 in operating assets is considering the purchase of a machine that costs $75,000 and which is expected to reduce operating costs by $21.000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to ignore income taxes.: (Round your answer to 1 decimal place.) Multiple Choice O 0.28 years a 30.7 years 86 years 3.5 years Morrel University has a small shuttle bus that is in poor mechanical condition. The bus can be either overhauled now or replaced with a new shuttle bus. The following data have been gathered concerning these two alternatives (Ignore income taxes.): New Bus $ 40,000 0 Purchase cost new Remaining net book value Major repair needed now Annual cash operating costs Salvage value now Trade-in value in seven years Present Bus $ 32,000 $ 21,000 $ 9,000 $ 12,000 $ 10,000 $ 2,000 $ 8,000 0 $ 5,000 Click here to view Exhibit 14B-1 and Exhibit 14B-2. to determine the appropriate discount factor(s) using the tables provided. The University could continue to use the present bus for the next seven years. Whether the present bus is used or a new bus is purchased the bus would be traded in for another bus at the end of seven years. The University uses a discount rate of 12% and the total cost approach to net present value analysis If the present bus is repaired, the present value of the annual cash operating costs associated with this alternative is closest to: Multiple Choice $(47,200)