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q1 q2 q3 q4 Porter Company is analyzing two potential investments. Project x $ 97,090 Project Y $ 77,000 Initial investment Net cash flow: Year

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Porter Company is analyzing two potential investments. Project x $ 97,090 Project Y $ 77,000 Initial investment Net cash flow: Year 1 Year 2 Year 3 Year 4 32,500 32,500 32,500 5,700 34,500 34,500 25,000 The payback period in yea (rounded to 2 decimal places) for Project X is: Multiple Choice 2.00 399 3.37 ww 1 Pro 4 Project X $ 100,500 Project Y $ 79, eee Initial investment Net cash flow : Year 1 Year 2 Year 3 Year 4 33,500 33,500 33,500 5,900 35,500 35,500 2e, eee If the company is using the payback period method, and it requires a payback of three years or less, which project(s) should be selected? Multiple Choice Project Project X Goth X and Yare ceatable pro The following present value factors are provided for use in this problem Periods 1 2 3 4 Present Value of $1 at 8% 8.9259 8.8573 8.7938 0.7350 Present Value of an Annuity of $1 at 8x 2.9259 1.7833 2.5771 3.3121 47 Xavier Company wants to purchase an asset for $37400 with a four year life and a $1.100 salvage value. Xavier requires an return on investment. The expected year end net cash flows are $12,400 in each of the four years. What is the machine's net present value fround to the newest whole dollar? Multiple Choice 54 475 $1570 Help Save & Ext Submit A project requires a $2.990.000 initial investment for new machinery with a five year Me and a salvage value of $328,000. The project is expected to yield annual Income of $245300 per year and net cash flows of $710000 per year for the next five years. The project's accounting rate of return is Moe Choice 25.0 c . 5 tson 20 4

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