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Pont Corporation has provided the following information concerning a capital budgeting project:

Investment Required in Equipment: $160,000

Expected life of the project: 4

Salvage value of equipment: $0

Annual Sales: $470,000

Annual cash operating expenses: $340, 000

Working Capital Requirement: $20,000

One-time renovation expense in year 3: $70,000

The company's income tax rate is 30% and its after-tax discount rate is 10%. The working capital would be required immediately and would be released for use elsewhere at the end of the project. The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. 1) The net present value of the entire project is closest to:

A. $123,268

B. $193,060

C. $109,608

D. $203,000

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Recent maintenance costs of Gallander Corporation are listed below:

Machine Hours Maintenance Costs

April: 727 $7,269

May: 725 $7,290

June: 720 $7,273

July: 641 $7,130

August: 671 $7,208

September: 728 $7,291

October: 710 $7,260

November: 707 $7,231

Management believes that maintenance cost is a mixed cost that depends on machine-hours. 2) Using the least-squares regression method, the estimate of the variable component of maintenance cost per machine-hour is closest to:

A) $1.85

B) $10.30

C) $1.67

D) $1.90

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Mitton Corporation is considering a capital budgeting project that would require investing $160,000 in equipment with an expected life of 4 years and zero salvage value. Annual incremental sales would be $440,000 and annual incremental cash operating expenses would be $320,000. The project would also require a one-time renovation cost of $0 in year 3. The company's income tax rate is 35% and its after-tax discount rate is 12%. The company uses straight-line depreciation. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. 3). The net present value of the entire project is closest to:

A. $279,496

B. $119,496

C. $208,000

D. $204,560