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Products is considering producing MP3 players and digital video recorders (DVRs). The products require different specialized machines, each costing

$11

million. Each machine has a five-year life and zero residual value. The two products have different patterns of predicted net cash inflows:

Calculate the DVR project's payback period. If the DVR project had a residual value of $ 150 comma 000 , would the payback period change? Explain and recalculate if necessary. Does this investment pass Crescendo 's payback period screening rule? Calculate the DVR project's payback period. First enter the formula, then calculate the payback period. (Enter amounts in dollars, not millions. Round your answer to two decimal places.) + ( / ) = Payback + ( / ) = years If the DVR project had a residual value of $ 150 comma 000 , would the payback period change? Explain and recalculate if necessary. If the investment had a $ 150 comma 000 residual value, the payback period ? would be would not be affected. The cash inflow from any residual value would occur ? at the beginning of at the end of the asset's useful operating life and ? is is not taken into account when calculating the payback period. (Round your answer to two decimal places.) The payback period if the DVR project had a residual value of $ 150 comma 000 is nothing years. Does this investment pass Crescendo 's payback period screening rule? The payback period is ? equal to less than more than 3.5 years, so it ? does not pass passes Crescendo 's initial screening.

Crescendo Products is considering producing MP3 players and digital video recorders (DVRs). The products require different specialized machines, each costing S1 million. Each machine has a five year life and zero residual value. The two products have different parter cash inilows E(ticon lo view thie dala) Calculate the DVR projecs payhack period the DVR project hai a residual value of $150,000 wauks the payback perid change? Explain and recacilate if necessary Does this investment pass Crescendo's payback period screening rule? Calculate the DVR project's payback period First enter the formula, then calculate the payback period. (Enter amounts in dollars, not millions. Round your answer to two decimal places.) )= Payback If the DVR projel had a residual vaue $150,000, wculd the paybiack perid cange Expla If the investment had a $150000 residual valuc, the payback pcriod Round your answer to two decimal places.) The payback period if the DVR project had a residual value of $150,000 is years Dces this investment pass Crescendo's payback period screening rule? The payback period is and recalculale if necessary ? affected. The cash inflow from any residual valuc would occur V the asscts uscful opcrating lifc andtaken into account when calculating the payback period 3.5 years, so it Crescendo's initial screening