A.

Swiss imports can acquire a $610,000 machine now that will benefit the rm over the next 5 years. A newly hired staff assistant correctly computed the net present value to be $34.470 by using a 10% hurdle rate. FV of 1 (i = 19%, n = 5): 1.511 FV of a series of $1 cash Flow (1 = 16%, n = 5): 6.165 PV of $1 (1 = 19%,- n = 5): 6.621 PV of a series of $1 cash flows (1 = 16%, n = 5): 3.791 On the basis of this information, the machine was expected to produce annual cash operating savings of approximately: Multiple Choice O $170,000. O None of the answers is correct. O $644,470. O $221,218. O $67,254.A piece of equipment costs $31,000, and is expected to generate $8,600 of annual cash revenues and $1,700 of annual cash expenses. The disposal value at the end of the estimated 11year life is $3,000. Ignoring income taxes, the payback period is: M ultiple Choice 4.06 years. 4.49 years. 7.43 years. 3.60 years. None ofthese options is correct OOOOQ Bowers Company plans to incur $193,000 of salaries expense and produce $327,000 of additional sales revenue if a capital project is implemented. Assuming a 30% tax rate, these two items collectively should appear in a capital budgeting analysis as: Multiple Choice 6 $40,200 outow, a $93,800 inflow. a $93,800 outow, a $40,200 inflow, None of the answers is correct OOOOO