A.)

(Ignore income taxes in this problem.) The management of Helberg Corporation is considering a project that would require an investment of $255,000 and would last for 6 years. The annual net operating income from the project would be $109,000, which includes depreciation of $32,000. The scrap value of the project's assets at the end of the project would be $16,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:

1.8 years

2.3 years

1.6 years

2.0 years

B.)

The Jackson Company has invested in a machine that cost $60,000, that has a useful life of five years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. It will have a payback period of three years. Given these data, the simple rate of return on the machine is closest to: (Ignore income taxes in this problem.) (Round your answer to 1 decimal place.)

9.7%

10.8%

13.3%

53.3%

C.

Fimbrez Corporation has provided the following data concerning an investment project that it is considering:

Initial investment	$190,000
Annual cash flow	$120,000	per year
Expected life of the project	4	years
Discount rate	9%

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table.

The net present value of the project is closest to: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)

$198,680

$190,000

$(70,000)

$(198,680)