e. Mustard Company is considering purchasing a machine costing $75,573 that will provide annual savings of $37,500. The income tax rate is 35%. What is the payback period, in years, for this investment proposal? 1) 2.02 years 2) 2.70 years 3) 3.10 years 4) 5.75 years f. Which of the following is a characteristic of the payback method? 1) It considers the project cash flows after the net initial investment is recovered. 2) It considers the time value of money. 3) It is difficult to understand. 4) It is not affected by accrual accounting conventions. g. The following information pertains to ABC Ltd. for the year 2009. Revenues $1,000,000 Expenses $ 850,000 Investment $ 500,000 What are the profit margin percentage and the return on investment (ROI) for ABC for 2009? 1) Profit margin percentage = 15%; ROI = 25.5% 2) Profit margin percentage = 15%; ROI = 30% 3) Profit margin percentage - 18%; ROI = 30.6% 4) Profit margin percentage - 18%; ROI = 35% h. Which of the following budgeting approaches is based on continuous improvements? 1) Activity-based budgeting 2) Just-in-time (JIT) budgeting 3) Kaizen budgeting 4) Kanban budgeting