Personal Calendar Cost/Manage he primary focus of capital budgeting and evaluating capital spending proposals is: cash flows. operating income; net income. taxable income; r Question 1.24 4 poin A piece of new equipment will cost S70,000. The equipment will provide a cost savings of $15,000 per year for ten years, after which it will have a $3,000 salvage value. If the required rate of return is 14%, the equipment's net present value is: O $23,888 O $9,050 O $8,240 O $(8,240) Question 1.25 4 point The management of Lisbon Corporation is considering a project that would require an investment of $282,000 and would last for 6 years. The annual cash inflows from the project would be $141,000. Depreciation on the project's assets would be $43,000 per year and the scrap value of the assets at the end of 6 years would be $24.000. The payback period of the project is closest to: O 2.6 years O 20 years O 29 years O 5.1 years Several add-ons are ready for use