Help please?

4.)

A company is considering the purchase of a new piece of equipment for $168,000. Predicted annual cash inflows from this investment are $67,200 (year 1); $56,000 (year 2); $33,600 (year 3); $27,600 (year 4); and $13,800 (year 5). The payback period is:

rev: 12_24_2013_QC_42995

2.41 years.

4.41 years.

3.41 years

2.68 years.

3.00 years.

5.)

A company is considering the purchase of a new machine for $96,000. Management predicts that the machine can produce sales of $25,900 each year for the next eight years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $4,800 per year plus depreciation of $12,600 per year. The company's tax rate is 40%. What is the payback period for the new machine?

5.42 years

4.55 years

18.82 years

11.29 years

7.20 years

6.)

A company is planning to purchase a machine that will cost $131,000, have a seven-year life, and be depreciated using the straight-line method with no salvage value. The company expects to sell the machine's output of 4,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below:

Sales		$215,000
Costs:
Manufacturing	$92,000
Depreciation on machine	21,000
Selling and administrative expenses	64,000	(177,000)
Income before taxes		$ 38,000
Income tax (50%)		( 19,000)
Net income		$ 19,000

What is the accounting rate of return for this machine?

29.01%

25.80%

90.48%

12.90%

14.50%

7.)

A company buys a machine for $108,000 that has an expected life of nine years and no salvage value. The company anticipates a yearly net income of $14,850 after taxes of 30%, with the cash flows to be received evenly throughout of each year. What is the accounting rate of return?

11.11%

13.75%

27.50%

45.83%

123.75%

Thank you!