Pearl Manufacturing Company provides glassware machines for major department store retailers. The company has been investigating a new piece of machinery for its production department. The old equipment has a remaining life of six years and the new equipment has a value of $319,400 with a six-year life. The expected additional cash inflows are $113,000 per year. What is the payback period for this investment? 1.8 years 3.8 years 2.8 years 6 years

The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $380,000. The investment is expected to generate $225,000 in annual cash flows for a period of four years. The required rate of return is 10%. The old machine can be sold for $30,000. The machine is expected to have zero value at the end of the four-year period. What is the net present value of the investment? Would the company want to purchase the new machine? Income taxes are not considered. $350,000; yes $22,500; no $375,650; no $363,025; yes

Hypore Darby Park Department is considering a new capital investment. The following information is available on the investment. The cost of the machine will be $348,400. The annual cost savings if the new machine is acquired will be $80,000. The machine will have a 6-year life, at which time the terminal disposal value is expected to be zero. Hypore Park Department is assuming no tax consequences. What is the internal rate of return for Hypore Park Department? 9% 10% 5% 11%

Assume your goal in life is to retire with 1 million dollars. How much would you need to save at the end of each year if investment rates average 5% and you have a 16-year work life? $458,112 $125,000 $3,125 $42,270