QUESTION 24 Sasso Company is considering the purchase of a new equipment for $400,000. The equipment has no residual value and net cash inflows for four years are: Year 1 Year 2 Year 3 Year 4 $100,000 150,000 200,000 200,000 What is the cash payback period for the investment? a. 3 years. b.3.25 years. c.2.75 years. d. 2 years QUESTION 25 Sable Company is considering the purchase of a new equipment for $400,000. The equipment has no residual value and net cash inflows for four years are: Year 1 Year 2 Year 3 Year 4 $100,000 150,000 200,000 150,000 Sable Company's discount rate is 8%. Interest (discount factors) of present value of 1 for years 1 through 4 are 0.926, 0.857, 0.794 and 0.735 respectively. What is the net present value for this equipment? a. 590,200 b.5126,950. c. $40,200. d. $26,950