I need serious Graduate Managerial help. Please review the highlighted problems. Chap 8 exercises 1-3.

J 360 I BA510 ~-----1----1 360 I Chapter 8 Exercises ill comect Additional student resources are available with Connect. EXERCISE 8-1 Payback Method [LO 8-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: 2 ....... 3 ....... $2,500 4 ....... $4,ooo 5 ....... $5,000 6 ....... $6,000 . . . .. . . $5,000 7 $2,000 8 ....... $4,000 ....... $3,000 9 Required: 1. 2. Determine the payback period of the investment. Would the payback period be affected if the cash inflow in the last year were several times as large? EXERCISE 8-2 Net Present Value Method [LO 8-2) The management of Kunkel Company is considering the purchase of a $27 ,000 machine that would reduce operating costs by $7,000 per year. At the end of the machine's five-year useful life, it will have zero scrap value. The company's required rate of return is 12%. Required: 1. 2. Determine the net present value of the investment in the machine. What is the difference between the total, undiscounted cash inflows and cash outflows over the entire life of the machine? EXERCISE 8-3 Internal Rate of Return [LO 8-3] Wendell's Donut Shoppe is investigating the purchase of a new $18,600 donut~making machine. The new machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $3,800 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 1,000 dozen more donuts each year. The company realizes a contribution margin of $1.20 per dozen donuts sold. The new machine would have a sixyear useful life. Required: 1. 2. 3. What would be the total annual cash inflows associated with the new machine for capital budgeting purposes? Find the internal rate of return promised by the new machine to the nearest whole percent. In addition to the data given previously, assume that the machine will have a $9,125 salvage value at the end of six years. Under these conditions, compute the internal rate of return to the nearest whole percent. (Hint: You may find it helpful to use the net present value approach; find the discount rate that will cause the net present value to be closest to zero.) EXERCISE 8-4 Uncertain Future Cash Flows [LO 8-4) Lukow Products is investigating the purchase of a piece of automated equipment that will save $400,000 each year in direct labor and inventory carrying costs. This equipment costs $2,500,000 and is expected to have a 15-year useful life with no salvage value. The company's required rate of return is 20% on all equipment purchases. Management anticipates that this equipment will provide intangible benefits such as greater flexibility and higher-quality output that will result in additional future cash inflows