Capital Budgeting Questions

1. Net income= 29 depreciation expense = 10 , salary expense = 7 . Find net cash flow

2. Investment cost= 300 , annual net cash flows= 30 , annual net income=25 . Find the payback period

3. Annual flows:

Year 1= 200

Year 2= 300

Year 3= 400

Year 4= 500

Investment cost=700 . Find the payback period

4. Investment cost= 800. Salvage value = 400 . Find average cost.

5. Average cost= 500, annual net income= 100; annual net cash flow= 200

Find annual return.