A project requires a $1,290,000 initial investment for new machinery. The project is expected to yield income of $103,000 per year and net cash flows of $300,000 per year for the next five years. The project's payback period is: Multiple Choice 12.5 years. 5.1 years. 4.3 years. 2.9 years. 3.2 years. Markson Company had the following results of operations for the past year: Contribution margin income statement Sales (10,400 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Income Annual Total $ 208,000 Per Unit $ 20.00 4.25 44,200 6.00 62,400 2.00 20,800 7.75 80,600 4.25 $ 3.50 44,200 $ 36,400 A foreign company offers to buy 3,200 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $2,560 for the purchase of special tools. Markson's annual productive capacity is 15,600 units. If Markson accepts this additional business, its profits will: Multiple Choice Decrease by $8,160. Decrease by $9,850. Increase by $3,040. Increase by $5,600. Decrease by $2,560. i = 11% i = 11% i = 11% n = 1 n = 2 n = 3 0.9009 0.8116 0.7312 A project requires a $38,000 initial investment and is expected to generate end-of-period annual cash inflows of $17,000 for each of three years. Assuming a discount rate of 11%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below: Multiple Choice $7,070 $(11,424) $41,543 $0 $3,543