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Cullumber Company is considering purchasing new equipment for $333,700. It is expected that the equipment will produce net annual cash ows of $47,000 over its
Cullumber Company is considering purchasing new equipment for $333,700. It is expected that the equipment will produce net annual cash ows of $47,000 over its 10-year useful life. Annual depreciation will be $33,370. Compute the cash payback period. (Round answer to 1 decimal place, (2.3. 10.5.) Cash payback period years eTextbook and Media Save for Later Attempts: 0 Of 3 used Sandhill Company is considering a long-term investment project called ZIP. ZIP will require an investment of $143,930. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,800, and annual cash outflows would increase by $40,900. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.52.) Cash payback period years. eTextbook and Media Save for Later Attempts: 0 of 3 used Submit AnswerIvanhoe Company accumulates the following data concerning a proposed capital investment: cash cost $212,060, net annual cash flows $43,000, and present value factor of cash inflows for 10 years is 5.22 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).) Determine the net present value, and indicate whether the investment should be made. Net present value $ The investment be made. eTextbook and Media Save for Later Attempts: 0 of 3 used Submit AnswerBlossom Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $139,190 and have an estimated useful life of 8 years. It can be sold for $60,000 at the end of that time. (Amusement parks need to rotate exhibits to keep people interested.) It is expected to increase net annual cash ows by $20,000. The company's borrowing rate is 8%. Its cost of capital is 10%. Click here to view the factor table. Calculate the net present value of this project to the company and determine whether the project is acceptable. (if the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round present value answer to 0 decimal places, e.g. 125.) Net presentvalue $ 1} The project eTextbook and Media Save for Later Attempts: 0 of 3 used
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