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Assume the following information for a capital budgeting proposal with a five-year time horizon: $525,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues

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Assume the following information for a capital budgeting proposal with a five-year time horizon: $525,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket costs $300,000 $130,000 $ 50,000 $ 40,000 4 This proposal's simple rate of return is closest to: This proposal's simple rate of return is closest to: Multiple Choice O 25%. 18%. O 15%. O 17%. Assume the following information for a capital budgeting proposal with a five-year time horizon: $ 480,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket costs $300,000 $ 130,000 $ 50,000 $ 40,000 The payback period for this investment is closest to: The payback period for this investment is closest to: Multiple Choice O 6.00 years. 1.36 years. 2.82 years. 3.69 years. Assume that a company is considering purchasing a machine for $50,000 that will have a five-year useful life and a $5,000 salvage value. The machine will lower operating costs by $18,000 per year. The company's required rate of return is 16%. The net present value of this investment is closest to: Click here to view Exhibit 148-1 and Exhibit 148-2. to determine the appropriate discount factor(s) using the tables provided. Multiple Choice $11,312 $13,702 $8.932 $24762

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