Batman Corporation is considering the purchase of a used printing press costing $84,200. The printing press would generate a net cash inflow of $37,422 a year for 3 years. At the end of 3 years, the press would have no salvage value. The company's cost of capital is 10 percent. The company uses straight-line depreciation. The present value factors of an annuity of $1.00 for different rates of return are as follows: Cost of Capital Period 8% 10% 12% 14% 16% 2 1.78 1.74 1.69 1.65 1.61 3 2.58 2.49 2.40 2.32 2.25 4 3.31 3.17 3.04 2.91 2.80 The investments internal rate of return (rounded to the nearest percent) is: A) 10 percent B) 16 percent. C) 14 percent D) 12 percent Superman is considering an investment in equipment for $150,000 with a four-year life and no salvage value. Superman uses the straight-line method of depreciation and is subject to a 34 percent tax rate. Over the life of the project, the total tax shield created by depreciation is: A) $ 25,000 B) $ 51,000. C) $ 40,800 D) $150,000 The management of Hulk Manufacturing is analyzing variable overhead variances for the fiscal period just ended. The flexible budget called for $352,000 in variable overhead but actual variable overhead was $400,000. In computing the overhead variances, Hulk's management discovered that it had used 80,000 pounds of direct material, rather than the budgeted amount of 88,000 pounds. (Pounds of direct material is the single overhead driver of variable overhead). The standard variable overhead rate per pound of direct material is $4.00. What is Hulk's variable overhead spending variance? A) $16,000 (F) B) $80,000 (U). C) $36,000 (U) D) $40,000 (U)