A problem in which you must calculate how much money you will have in the future as a result of depositing a fixed amount of money each period is a: Multiple Choice X future value of a single amount problem. present value of a single amount problem. future value of an annuity problem. present value of an annuity problem. Patterson Corp. is considering the purchase of a new plece of equipment, which would have an initial cost of $533,000, a 7-year life, and $150,000 salvage value. The increase in cash flow each year of the equipment's life would be as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 $110,000 $102,000 $100,000 $ 89,000 $ 86,000 $ 81,000 $ 75,000 What is the payback period? Multiple Choice O 5.11 years 5.57 years O O 5.60 years 5.78 years Newport Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $200,000. The equipment will have an initial cost of $900,000 and have a 6-year life. There is no salvage value for the equipment. What is the accounting rate of return? Ignore income taxes. Multiple Choice 5.56% 16.67% 22.22% 44.44%