An unfavorable cost variance occurs when standard cost at actual volumes exceeds actual cost. O True OFalse Use this information for Nebraska Corporation to answer the question that follow. The management of Nebraska Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for Years 1 through 5 are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability: Year Income from Operations $100,000 40,000 1 Net Cash Flow $180,000 120,000 100,000 90,000 N 3 40,000 10,000 10,000 120,000 The average rate of return for this investment is O a. 10% Ob. 58% O c. 16% Od. 18% Hayden Company is considering the acquisition of a machine that costs $573,000. The machine is expected to have a useful life of six years, a negligible residual value, an annual net cash flow of $88,000, and annual operating income of $74,800. What is the estimated cash payback period for the machine (round to one decimal points)? Oa. 1.2 years Ob. 8.8 years Oc. 6.5 years O d. 7.7 years Use this information for Nebraska Corporation to answer the question that follow. The management of Nebraska Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for Years 1 through 5 are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability: Year Income from Operations $100,000 40,000 Net Cash Flow $180,000 120,000 1 Z 3 40,000 100,000 90,000 10,000 10,000 120,000 The cash payback period for this investment is Oa. 4 years Ob. 5 years Oc. 3 years Od: 2 years