A3 14.28% B) 42.1 1% C) 147.37% D) 25.00% 23) Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings 23) from the equipment would result in an annual increase in cash flow of $100,000. The equipment will have an initial cost of $400,000 and have a 5-year life. If the salvage value of the equipment is estimated to be $75,000, what is the payback period? Ignore income taxes. A) 4.75 years B) 3.25 years C) 7.00 years D) 4.00 years The method that compares the present value of a project's future cash flows to the initial investment is: B) internal rate of return. D net present value. A) accounting rate of return. C) payback period. Lawrence Corp, is considering the purchase of a new piece of equipment. When discounted at a hurdle rate of 8%, the project has a net present value of $24,580,w discounted at a hurdle rate of 10%, the project has a net present value of ($28,940 internal rate of return of the project is: A) greater than 10%. C) between zero and 8%. B) between 8% and 10%. D) zero