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Please answer both questions! Thanks alot. Exercise 26-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset

Please answer both questions! Thanks alot.

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Exercise 26-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset for $250,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year 1 $50,000 Year 2 $36,000 Net cash flows Year 3 $ 60,000 Year 4 $130,000 Year 5 $ 24,000 Total $300,000 Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback period answer to 2 decimal place.) Year Cash Inflow (Outflow) Cumulative Net Cash Inflow (Outflow) 0 $ (250,000) 1 2 3 4 5 Payback period = Exercise 26-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $270,000 and have a useful life of four years. The system yields an incremental after-tax income of $77,884 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $200,000, has a $14,000 salvage value, is expected to last seven years, and will generate an after-tax income of $43,000 per year after straight-line depreciation. Payback Period Choose Numerator: 1 Choose Denominator: 1 Annual net cash flow Payback Period Payback period Cost of investment a. 0 S b. 0

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