Acme Tools is considering the purchase of a new machine. The total cost of the new machine is $48,000 and it has a 9-year service life with no salvage value at the end of nine years. The annual cash inflow will be 16% of the cost of the machine. If the appropriate cost of capital is 6.0 percent, what is the discounted payback period? A. less than 8.0 years B. more than 8.0 years but less than 8.3 years C. more than 8.3 years but less than 8.6 years D. more than 8.6 years but less than 8.9 years E. more than 8.9 years

A firm is evaluating an investment proposal which has an initial investment of $23,500, a cash inflow in year 1 that is presently valued at $9,000, a cash inflow in year 2 that is presently valued at $7,500. a cash inflow in year 3 that is presently valued at $6,000 and a cash inflow in year 4 that is presently valued at $5,500. The appropriate cost of capital is 5.0 percent. The net present value of the investment is: A. less than $100 B. more than $100 but less than $1,600 C. more than $1,600 but less than $3,100 D. more than $3,100 but less than $4,600 E. more than $4,600