Redwood Corporation is considering two alternative investment proposals with the following data: Proposal X Proposal Y Investment $870,000 $488,000 Useful life 9 years 9 years Estimated annual net cash inflows for 9 years $120,000 $58,000 Residual value $14,000 $- Depreciation method Straight - line Straight-line Required rate of return 16% 15% How long is the payback period for Proposal Y? O A. 8.41 years OB. 34.86 years OC. 62.14 years O D. 7.25 years Redwood Corporation is considering two alternative investment proposals with the following data: Proposal X Proposal Y Investment $840,000 $492,000 Useful life 7 years 7 years Estimated annual net cash inflows for 7 years $125,000 $82,000 Residual value $59,000 $- Depreciation method Straight-line Straight-line Required rate of return 16% 12% What is the accounting rate of return for Proposal X? (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, X.XX%.) O A. 2.38% O B. 14.88% OC. 0.60% OD. 1.60% Interior Products, Inc. is evaluating the purchase of a new machine to use in its manufacturing process. The new machine would cost $43,000 and have a useful life of 6 years. At the end of the machine's life, it would have a residual value of $2,90. Annual cost savings from the new machine would be $12,000 per year for each of the 6 years of its life. Interior Products, Inc. has a minimum required rate of return of 14% on all new projects. The net present value of the new machine would be closest to: (Round any intermediary calculations and your final answer to the nearest dollar.) (Click the icon to view the present value of $1 table.) (Click the icon to view the present value of annuity of $1 table.) A Data Table Present Value of $1 Periods O A. $46,668. O B. $4,990. OC. $1,322. O D. $3,668. 5 14% 0.519 0.456 0.400 16% 0.476 0.410 0.354 18% 0.437 0.370 0.314 6 7 Data Table Present Value of Annuity of $1 Periods 14% 5 3.433 3.889 4.288 16% 3.274 3.685 4.039 18% 3.127 3.498 6 3.812 Reece Corporation is considering the purchase of a machine that would cost $22,712 and would have a useful life of 5 years. The machine would generate $6,300 of net annual cash inflows per year for each of the 5 years of its life. The internal rate of return on the machine would be closest to: Data Table E: (Click the icon to view the present value of $1 table.) E: (Click the icon to view the present value of annuity of $1 table.) Present Value of $1 Periods O A. 14%. O B. 12%. O C. 8%. OD. 10%. 4 14% 0.592 0.519 6 7 8 9 8% 0.735 0.681 0.630 0.583 0.540 0.500 0.463 10% 0.683 0.621 0.564 0.513 0.467 0.424 0.386 12% 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 | Data Table 10 0.270 Print Done 8% 12% 3.037 3.605 Present Value of Annuity of $1 Periods 3.312 5 3.993 6 4.623 5.206 8 5.747 9 6.247 6.710 4.111 10% 3.170 3.791 4.355 4.868 5.335 5.759 6.145 14% 2.914 3.433 3.889 4.288 4.639 4.946 5.216 7 4.564 4.968 5.328 10 5.650