Juniper Corporation is considering two alternative investment proposals with the following data:

	Proposal X	Proposal Y
Investment	$800,000	$508,000
Useful life	7 years	7 years
Estimated annual net cash inflows for 7 years	$125,000	$83,000
Residual value	$14,000	$
Depreciation method	Straightline	Straightline
The required rate of return	18%	11%

How long is the payback period for Proposal X?

2/ Juniper Corporation is considering two alternative investment proposals with the following data:

	Proposal X	Proposal Y
Investment	$820,000	$547,000
Useful life	9 years	9 years
Estimated annual net cash inflows for 9 years	$125,000	$66,000
Residual value	$29,000	$
Depreciation method	Straightline	Straightline
Required rate of return	18%	7%

What is the accounting rate of return for Proposal X? (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, X.XX%.)

3/ Williams Corporation is considering investing in specialized equipment costing

$260,000.the equipment has a useful life of 5 years and a residual value of $15,000. Depreciation is calculated using the straightlinemethod. The expected net cash inflows from the investment are:

Year 1	$50,000
Year 2	$70,000
Year 3	$150,000
Year 4	$60,000
Year 5	$20,000
Total cash inflows	$350,000

Williams Corporation's required rate of return on investments is

17%.

What is the accounting rate of return on the investment?

4/ Beck Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,880,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,700,000. The following information is available:

	Indiana proposal	Kentucky proposal
Required investment	$1,880,000	$2,700,000
Estimated life	5 years	5 years
Estimated residual value	$30,000	$60,000
Estimated annual cash inflows over the next 9 years	$200,000	$700,000
Required rate of return	14%	14%

The payback period for the Kentucky proposal is closest to

5/ You won the lottery and have a couple of choices as to how to take the money. Which choice yields a greater present value?Present Value of $1

Periods	5%	6%	8%	10%
4	0.823	0.792	0.735	0.683
5	0.784	0.747	0.681	0.621
6	0.746	0.705	0.630	0.564
7	0.711	0.665	0.583	0.513
8	0.677	0.627	0.540	0.467
9	0.645	0.592	0.500	0.424

Present Value of Annuity of $1

Periods	5%	6%	8%	10%
4	3.546	3.465	3.312	3.170
5	4.329	4.212	3.993	3.791
6	5.076	4.917	4.623	4.355
7	5.786	5.582	5.206	4.868
8	6.463	6.210	5.747	5.335
9	7.108	6.802	6.247	5.759

6/ Sloan Corporation is considering the purchase of a machine that would cost

$18,216

and would have a useful life of

4

years. The machine would generate

$5,500

of net annual cash inflows per year for each of the

4

years of its life. The internal rate of return on the machine would be closest to:Present Value of $1

Periods	8%	10%	12%	14%
4	0.735	0.683	0.636	0.592
5	0.681	0.621	0.567	0.519
6	0.630	0.564	0.507	0.456
7	0.583	0.513	0.452	0.400
8	0.540	0.467	0.404	0.351
9	0.500	0.424	0.361	0.308
10	0.463	0.386	0.322	0.270

Present Value of Annuity of $1

Periods	8%	10%	12%	14%
4	3.312	3.170	3.037	2.914
5	3.993	3.791	3.605	3.433
6	4.623	4.355	4.111	3.889
7	5.206	4.868	4.564	4.288
8	5.747	5.335	4.968	4.639
9	6.247	5.759	5.328	4.946
10	6.710	6.145	5.650	5.216

7/ GAB Manufacturing is evaluating investing in a new metal stamping machine costing

$31,700.

Ryker estimates that it will realize

$10,000

in annual cash inflows for each year of the machine's

4year

useful life. The internal rate of return (IRR) for the machine is approximately:Present Value of $1

Periods	6%	8%	10%	12%	14%
3	0.840	0.794	0.751	0.712	0.675
4	0.792	0.735	0.683	0.636	0.592
5	0.747	0.681	0.621	0.567	0.519
6	0.705	0.630	0.564	0.507	0.456
7	0.665	0.583	0.513	0.452	0.400
8	0.627	0.540	0.467	0.404	0.351
9	0.592	0.500	0.424	0.361	0.308
10	0.558	0.463	0.386	0.322	0.270

Present Value of Annuity of $1

Periods	6%	8%	10%	12%	14%
3	2.6730	2.577	2.487	2.402	2.322
4	3.465	3.312	3.170	3.037	2.914
5	4.212	3.993	3.791	3.605	3.433
6	4.917	4.623	4.355	4.111	3.889
7	5.582	5.206	4.868	4.564	4.288
8	6.210	5.747	5.335	4.968	4.639
9	6.802	6.247	5.759	5.328	4.946
10	7.360	6.710	6.145	5.650	5.216

8/ Hadden Corporation is evaluating a capital investment opportunity. This project would require an initial investment of

$37,000

to purchase equipment. The equipment will have a residual value at the end of its life of

$5,000.

The useful life of the equipment is

4

years. The new project is expected to generate additional net cash inflows of

$23,000

per year for each of the

four

years. The company's required rate of return is

12%.

The net present value of this project is closest to:Present Value of $1

Periods	10%	12%	14%	16%
3	0.751	0.712	0.675	0.641
4	0.683	0.636	0.592	0.552
5	0.621	0.567	0.519	0.476
6	0.564	0.507	0.456	0.410

Present Value of Annuity of $1

Periods	10%	12%	14%	16%
3	2.487	2.402	2.322	2.246
4	3.170	3.037	2.914	2.798
5	3.791	3.605	3.433	3.274
6	4.355	4.111	3.889	3.685

9/ Altrax Manufacturing is considering the purchase of a new machine to use in its packing department. The new machine will have an initial cost of $170,000, a useful life of

12 years and a $14,000 residual value. Altrax will realize

$15,300in annual savings for each of the machine's

12year

useful life. Given the company's

5%

required rate of return, the new machine will have a net present value (NPV) of:Present Value of $1

Periods	3%	4%	5%
10	0.744	0.676	0.614
11	0.722	0.650	0.585
12	0.701	0.625	0.557
13	0.681	0.601	0.530
14	0.661	0.577	0.505
15	0.642	0.555	0.481

Present Value of Annuity of $1

Periods	3%	4%	5%
10	8.530	8.111	7.722
11	9.253	8.760	8.306
12	9.954	9.385	8.863
13	10.635	9.986	9.394
14	11.296	10.563	9.899
15	11.938	11.118	10.380

(Round any intermediary calculations and your final answer to the nearest dollar.)