(Ignore income taxes in this problem.) The management of Helberg Corporation is considering a project that would require an investment of $265,000 and would last for 6 years. The annual net operating income from the project would be $111,000, which includes depreciation of $30,000. The scrap value of the project's assets at the end of the project would be $16,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:

1.9 years

2.4 years

1.7 years

2.1 years

2.

Ignore income taxes in this problem.) A company with $765,000 in operating assets is considering the purchase of a machine that costs $83,000 and which is expected to reduce operating costs by $15,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to:

5.5 years

9.2 years

0.18 years

51 years

3.

(Ignore income taxes in this problem.) Neighbors Corporation is considering a project that would require an investment of $369,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows:

Sales	$255,000
Variable expenses	25,000
Contribution margin	230,000
Fixed expenses:
Salaries	43,000
Rents	56,000
Depreciation	51,000
Total fixed expenses	150,000
Net operating income	$80,000

The scrap value of the project's assets at the end of the project would be $33,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:

2.8 years

4.6 years

3.5 years

2.7 years

4.

Fimbrez Corporation has provided the following data concerning an investment project that it is considering:

Initial investment	$290,000
Annual cash flow	$131,000	per year
Expected life of the project	4	years
Discount rate	9%

Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables.

The net present value of the project is closest to: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)

rev: 05_13_2016_QC_CS-51636

$134,309

$290,000

$(159,000)

$(134,309)