(LO 10)The following present value factors are provided for use in this problem. Periods 1 Present Value of $1 at 9% 0.9174 0.8417 0.7722 0.7084 Present Value of an Annuity of $1 at 9% 0.9174 1.7591 2.5313 3.2397 2 3 4 Cliff Co. wants to purchase a machine for $66,000, but needs to earn an 9% return. The expected year-end net cash flows are $26,000 in each of the first three years, and $30,000 in the fourth year. What is the machine's net present value? Multiple Choice $(186). $21,066. $87,066. $(44,748) $108,000. (LO 10)A company is planning to purchase a machine that will cost $57,000 with a six-year life and no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the payback period for this machine? $ 138,000 Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses Income before taxes Income tax (35%) $68,000 9,500 46,000 (123,500). $ 14,500 (5,075) $ 9,425 Net income Multiple Choice 12.10 years. 6.00 years. 3.01 years. 1.99 year. 6.05 years. (LO 10) Poe Company is considering the purchase of new equipment costing $89,500. The projected annual cash inflows are $39,700, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of $1 and present value of an annuity of $1 for different periods is presented below. Compute the net present value of the machine. Periods 1 NP Present Value of $1 at 10% 0.9091 0.8264 0.7513 0.6830 Present Value of an Annuity of $1 at 10% 0.9091 1.7355 2.4869 3.1699 2 3 4 Multiple Choice $54,919. $22,101. $(22,101). $(36,345). $36,345. (LO 6) Indicate several reasons why companies prepare budgets for their profit centers and cost centers, and explain what role supervisors and middle managers should play in the budgeting process. Essay Toolbar navigation B I U S = = = : A > RA