Please assist me in answering the attached exercise questions.

EXERCISE 13-4 Uncertain Future Cash Flows Lukow Products is investigating the purchase of a piece of automated equipment that will save $400,000 each year in direct labor and inventory carrying costs. This equipment costs $2,500,000 and is expected to have a 15-year useful life with no salvage value. The company's required rate of return is 20% on all equipment purchases. Management anticipates that this equipment will provide intangible benefits such as greater flexibility and higher-quality output that will result in additional future cash inflows. Required: What dollar value per year would these intangible benefits have to have to make the equipment an acceptable investment? EXERCISE 13-5 Preference Ranking Information on four investment proposals is given below: Required: 1. Compute the project profitability index for each investment proposal. 2. Rank the proposals in terms of preference. EXERCISE 13-8 Payback Period and Simple Rate of Return Nick's Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total $300,000, have an eight-year useful life, and have a total salvage value of $20,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Required: 1. Assume that Nick's Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games? 2. Compute the simple rate of return promised by the games. If the company requires a simple rate of return of at least 12%, will the games be purchased? EXERCISE 13-9 Net Present Value Analysis and Simple Rate of Return Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division's return on investment (ROI), which has been above 20% each of the last three years. Derrick is considering a capital budgeting project that would require a $3,000,000 investment in equipment with a useful life of five years and no salvage value. Holston Company's discount rate is 15%. The project would provide net operating income each year for five years as follows: Required: 1. Compute the project's net present value. 2. Compute the project's simple rate of return. 3. Would the company want Derrick to pursue this investment opportunity? Would Derrick be inclined to pursue this investment opportunity? Explain. EXERCISE 13-10 Basic Net Present Value Analysis Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $13,000 for 200 shares of Malti Company's common stock. She received a $420 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $16,000. Kathy would like to earn a return of at least 14% on all of her investments. She is not sure whether the Malti Company stock provided a 14% return and would like some help with the necessary computations. Required: Using the net present value method, determine whether or not the Malti Company stock provided a 14% return. Round all computations to the nearest whole dollar. EXERCISE 13-13 Basic Payback Period and Simple Rate of Return Computations A piece of laborsaving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: Required: 1. Compute the payback period for the equipment. If the company requires a payback period of four years or less, would the equipment be purchased? 2. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. Would the equipment be purchased if the company's required rate of return is 14%? EXERCISE 13-15 Internal Rate of Return and Net Present Value Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $137,280, including freight and installation. Henrie's has estimated that the new machine would increase the company's cash inflows, net of expenses, by $40,000 per year. The machine would have a five-year useful life and no salvage value. Required: 1. Compute the machine's internal rate of return to the nearest whole percent. 2. Compute the machine's net present value. Use a discount rate of 14%. Why do you have a zero net present value? 3. Suppose that the new machine would increase the company's annual cash inflows, net of expenses, by only $37,150 per year. Under these conditions, compute the internal rate of return to the nearest whole percent