(Ignore income taxes in this problem.) The management of Dewitz Corporation is considering a project that would require an initial investment of $69,000. No other cash outflows would be required. The present value of the cash inflows would be $80,040. The profitability index of the project is closest to:

0.16

1.16

0.86

0.14

(Ignore income taxes in this problem.) Sibble Corporation is considering the purchase of a machine that would cost $290,000 and would last for 5 years. At the end of 5 years, the machine would have a salvage value of $40,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $70,000. The company requires a minimum pretax return of 12% on all investment projects. The net present value of the proposed project is closest to: (Round your 'PV factors' to three decimal places.) (Use Exhibit11B-1 and Exhibit11B-2)

-$37,650

-$2,350

-$39,690

-$14,970

(Ignore income taxes in this problem.) The Jackson Company has invested in a machine that cost $100,000, that has a useful life of ten years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. It will have a payback period of seven years. Given these data, the simple rate of return on the machine is closest to (Round your intermediate calculations to the nearest dollar amount):

2.86%

4.76%

4.29%

24.29%