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Drop down choices: -Net cash inflow -Net cash outflow -Investment requited Drop down choices: -Net cash inflow -Net cash outflow -Investment requited Drop down choices:

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image text in transcribed

image text in transcribed

Drop down choices:

-Net cash inflow

-Net cash outflow

-Investment requited

image text in transcribed

image text in transcribed

image text in transcribed

Drop down choices:

-Net cash inflow

-Net cash outflow

-Investment requited

image text in transcribed

Drop down choices:

-Annual incremental net operating income

-Annual incremental net operating loss

-Initial investment

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Investment $59,000 $9,000 Year 1 2 3 4 5 6 7 8 9 10 Cash Inflow $5,000 $10,000 $20,000 $21,000 $24,000 $22,000 $20,000 $18,000 $17,000 $17,000 Required: 1. Determine the payback period of the investment. (Round your answer to 1 decimal place.) Payback period years [The following information applies to the questions displayed below.) Nick's Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $390,000, have an eight-year useful life, and have a total salvage value of $39,000. The company estimates that annual revenues and expenses associated with the games would be as follows: $220,000 Revenues Less operating expenses: Commissions to amusement houses Insurance Depreciation Maintenance $ 60,000 55,000 43.875 40,000 198.875 Net operating income $ 21,125 Compute the pay back period associated with the new electronic games. Payback Period Choose Denominator: Choose Numerator: Payback Period Payback period 1 / = years Compute the simple rate of return promised by the games. (Round your answer to 1 decimal place. i.e. 0.123 should be considered as 12.3%.) Simple rate of return % A piece of laborsaving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: $ 329,000 Purchase cost of the equipment Annual cost savings that will be provided by the equipment Life of the equipment $ 70,000 10 years Compute the payback period for the equipment. Choose Numerator: Payback Period 1 Choose Denominator: 1 = Payback Period Payback period 11 1 = years Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. Simple Rate of Return Choose Denominator: Choose Numerator: Simple Rate of Return Simple rate of return / %

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