Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 9 years with no salvage value at the end of the 9 years. Ataxia's internal rate of return on this equipment is 4%. Ataxia's discount rate is also 4%. The payback period on this equipment is closest to (Ignore income taxes.): Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. Multiple Choice 0 9.000 years 0 7.435 years 0 4.500 years 0 8.535 years Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $29,000 and will have a 6-year useful life and a $4,100 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $32,100 per year. The cost of these prescriptions to the pharmacy will be about $25,200 per year. The pharmacy depreciates all assets using the straight-line method. The payback period for the auto is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.) Multiple Choice O 4.2 years 0 3.6 years 0 4.8 years 0 3.7 years A company with $780,000 in operating assets is considering the purchase of a machine that costs $84,000 and which is expected to reduce operating costs by $16,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to (Ignore Income taxes.): (Round your answer to 1 decimal place.) Multiple Choice 0 5.3 years 0 9.3 years 0 0.19 years 0 O 48.8 years The management of Lanzilotta Corporation is considering a project that would require an investment of $225,000 and would last for 6 years. The annual net operating income from the project would be $115,000, which includes depreciation of $32,000. The scrap value of the project's assets at the end of the project would be $19,300. The cash Inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore Income taxes.): (Round your answer to 1 decimal place.) Multiple Choice O 1.5 years 2.0 years O 1.4 years 1.4 years 2.8 years