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Clarinet Publishing is considering the purchase of a used printing press costing $38, 400. The printing press would generate a net cash inflow of $20,000

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Clarinet Publishing is considering the purchase of a used printing press costing $38, 400. The printing press would generate a net cash inflow of $20,000 a year for 5 years. At the end of 5 years, the press would have no salvage value. The company's cost of capital is 10 percent. The investment's payback period in years (rounded to two decimal points) is: a. 2.56 b. 2.13 c. 1.92 d. 3.00 Sell or process further Maris Creamery is deciding between the option of processing milk and selling it "as-is" or process it further into ice cream. If Maris decides to sell the milk "as-is", they can sell it for $3 per gallon. The cost to produce the milk is $1.50 per gallon. If the company decides to process the milk further and create the ice cream, they could sell it for $4 per gallon. This additional processing would add $1.25 to the current production cost. Should Maris Creamery sell the milk "as-is" or process it further into ice cream

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