please help me with all three pictures
Required information Exercise 16-36 Payback Period; Even Cash Flows (Section 3) (LO 16-1, 16-8) [The following information applies to the questions displayed below.) The management of Iroquois National Bank is considering an investment in automatic teller machines. The machines would cost $170,200 and have a useful life of seven years. The bank's controller has estimated that the automatic teller machines will save the bank $37,000 after taxes during each year of their life (including the depreciation tax shield). The machines will have no salvage value. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Exercise 16-36 Part 3 3. Which of the following statements are true? (Select all that apply.) DO The net-present-valuo method is preferable to the payback method The payback method is preferable to the not-present-value method. The payback period criterion fails to account for the time value of money. If management uses the payback method, the investment will be approved only if the required payback period is 4.6 years or The cut-off value for the payback period is very much dependent on the bank's hurdle rate. The cut-off value for the payback period has nothing to do with the bank's hurdle rate more Problem 16-52 Ranking Investment Proposals; NPV versus Profitability Index; Taxes (Section 2) (L 16-6, 16-7) The owner of Zivanov's Pancake House is considering an expansion of the business. He has identified two alternatives, as follows: Build a new restaurant near the mall, Buy and renovate an old bullding downtown for the new restaurant The projected cash flows from these two alternatives are shown below. The owner of the restaurant uses a 10 percent after-tax discount rate. Net After-Tax Cash inflows Investment Cash Outflow: Proposal Time 0 Years 1-10 Years 11-20 Mall restaurant $ 619,000 $76,000 $76,000 Downtown restaurant 266,000 47,000 Includes after-tax cash flows from all sources, including incremental revenue, Incremental expenses, and depreciation tax shield. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) provideo.) Required: 1. Compute the net present value of each alternative restaurant site. (Round your final answers to the nearest dollar.) Net Present Value Mall restaurant Downtown restaurant 2. Compute the profitability Index for each alternative. (Round your answers to 2 decimal places.) Profitablility Index Mall restaurant Downtown restaurant 3. How do the two sites rank in terms of NPV and the profitability index? NPV Profitablility Index Mall restaurant Downtown restaurant
