A disavantage of using the pay back period to compare investment alternatives is that 25 A) It includes the time value of money B) It cannot be used if a company records C) It cannot be D) It cannot be used when cash flows are not uniform. E) It ignores cash flows beyond the payback period. used to compare investments with different initial investments 26) Vextra Corporation is considering the purchase of new oquipment costing $35,000. The projected annual cash inflow is $11,000, to be received at the end of each year. The machine has a useful of4 years and no salvage value. Vextra requires a 12% return on its investments. The present of an annuity of $1 for different periods follows: value Periods 12 Percent 0.8929 1.6901 2.4018 3.0373 What is the net present value of the machine (rounded to the nearest whole dollar)? A) S(33,410) B) $3,410. C) S(3,100) D) S(1,590) E)$35,000. 27) A the company's required rate of return, typically its cost of capital is called the: A) Hurdle rate B) Average rate of returm C) Maximum rate. D) Internal rate of return E) Payback rate