che a 6-year useful life and a $4,000 salvage value. Delivering never done before) should increase gross revenues by at acy has purchased a small auto for delivering prescriptions. The auto was purchased for $28,000 and will have 6-year prescriptions (which the pharmacy has least $32,000 per year. The cost of these prescriptions year. The pharmacy to the pharmacy will be about $25,000 per all assets using the straight-line method. The payback period for the auto is close A. 4 years B. 1.8 years C. 2 years D. 1.2 years 26. Beaver Corporatio $18,000. The machine would save about $4,000 per year over the present method o component parts, and would have a salvage value of about $3,000 in 6 years when the machine would be replaced. The company's required rate of return is 12%. The machine's net present value is closest to: A. $1,556 B. $(35) C. $11,000 D. $8,000 n is investigating the purchase of a new threading machine that costs of a tractor-trailer that would cost 27. Galindo Long-Haul, Inc., is considering the purchase S178,848, would have a useful life of 8 years, and would have no salvage value. The tractor- trailer would be used in the company's hauling business, resulting in additional net cash inflows of $36,000 per year. The internal rate of return on the investment in the tractor-trailer is closest to: A.10% B. 15% C. 12% D. 13% 28. Mercer Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $250,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $12,000 per year to operate and maintain, but would save $55,000 per year in labor and other costs. The old machine can be sold now for scrap for $10,000. The simple rate of return on the new machine is closest to: A. 17.9% B. 7.5% C. 22.0% D. 7.2%