Inglewood Inc. would like to purchase a specialized production machine for $3,500,000. The machine is expected to have a life of three years, and a salvage value of $200,000. Annual maintenance costs will total $200,000. Annual material savings are predicted to be $900,000. The company's required rate of return is 20 percent.

36. Ignoring the time value of money, what is the net cash inflow or (outflow) resulting from this investment opportunity?

a. $2,300,000

b. $1,200,000

c. ($1,200,000)

d. ($2,300,000)

e. None of the answer choices is correct.

37. Roske Company is considering a project with an initial investment of $40,000 and annual cash inflows of $8,000 per year for seven years. The company's cost of capital is 12 percent. Factors for a 12 percent interest rate for seven years are shown below:

Future Value of $1 2.211

Present Value of $1 0.452

Future Value of an Annuity 10.089

Present Value of an Annuity 4.564

Using the net present value (NPV) to evaluate this proposal, the company should:

a. invest in the proposal since the NPV is 36,512

b. reject the proposal since the NPV is ($3,488).

c. reject the proposal since the NPV is ($36,512).

d. invest in the proposal since the NPV is $3,488.

e. None of the answer choices is correct.

38. Miller Inc. had the following sales during 2016:

Quarter 1	10,000 units
Quarter 2	11,000 units
Quarter 3	14,000 units
Quarter 4	12,000 units

Miller expects sales in each quarter of 2013 to be 10% more than the respective quarters for 2016. If each unit sells for $110, what amounts will appear as sales revenue in the quarterly sales budgets for 2013?

a. $990,000; $1,089,000; $1,386,000; $1,188,000

b. $1,100,000; $1,210,000; $1,540,000; $1,320,000

c. $1,421,750; $1,421,750; $1,421,750; $1,421,750

d. $1,210,000; $1,331,000; $1,694,000; $1,452,000

e. None of the answer choices is correct.

39.Alta Vista Company plans to sell 90,000 units in June and 135,000 units in July. The companys policy is to keep 15% of the next month's sales in ending inventory. If the ending inventory in May was consistent with this policy, how many units should be produced in June?

a. 110,250 units

b. 83,250 units

c. 96,750 units

d. 123,750 units

e. There is not enough information to answer this question.

40. Fireside Inc. had sales as follows during 2016:

Quarter 1	15,000 units
Quarter 2	15,500 units
Quarter 3	18,000 units
Quarter 4	16,000 units

Fireside expects sales in each quarter of 2013 to be 15% more than the respective quarters for 2016. If each unit sells for $40, what amounts will appear as sales revenue in the quarterly sales budgets for 2013?

a. $690,000; $713,000; $828,000; $736,000

b. $741,750; $741,750; $741,750; $741,750

c. $540,000; $558,000; $648,000; $576,000

d. $600,000; $620,000; $720,000; $640,000

e. None of the answer choices is correct.