Frost Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $175,000, has an estimated useful life of 7 years and a salvage value of zero, and will increase net annual cash flows by $38,346. Click here to view PV table. What is its approximate internal rate of return? (Round answer to 0 decimal places, e.g. 16%.) Internal rate of return % Jonczyk Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $469,000, has an expected useful life of 12 years and a salvage value of zero, and is expected to increase net annual cash flows by $73,000. Project B will cost $308,000, has an expected useful life of 12 years and a salvage value of zero, and is expected to increase net annual cash flows by $50,000. A discount rate of 9% is appropriate for both projects. Click here to view PV table. Calculate the net present value and profitability index of each project. (If the net present value is negative, use either a negative sign preceding the number eg.-45 or parentheses eg. (45). Round present value answers to 0 decimal places, e.g. 125 and profitability index answers to 2 decimal places, eg. 15.52. For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg. 1.25124.) Project A Project B $ Net present value Profitability index Show Attempt History Current Attempt in Progress Dobbs Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $56,784. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $9,100. At the end of eight years, the company will sell the truck for an estimated $27,900. Traditionally, the company has used a general rule that it should not accept a proposal unless it has a payback period that is less than 50% of the asset's estimated useful life. Pavel Chepelev, a new manager, has suggested that the company should not rely only on the payback approach but should also use the net present value method when evaluating new projects. The company's cost of capital is 8%. - Your answer is partially correct. Calculate the cash payback period and net present value of the proposed investment. (If the net present value is negative, use either a negative sign preceding the number e.g.-45 or parentheses eg. (45). Round cash payback period to 2 decimal place, eg. 12.51. For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg. 1.25124 and net present value to O decimal places. e. 9.5.275.) Question 2 of 4 2.2573 Your answer is partially correct. Calculate the cash payback period and net present value of the proposed investment. (If the net present value is negative, use either a negative sign preceding the number eg. -45 or parentheses eg. (45). Round cash payback period to 2 decimal place, eg. 12.51. For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg. 1.25124 and net present value to 0 decimal places, eg. 5,275.) Click here to view PV table. Cash payback period 6.24 years $ Net present value