Sedatole Corporation is considering a project that would have a ten-vear life and require a $450,000 investment in equipment which has no salvage value. The project would provide operating income each year as follows for the life of the project: Cash $500,000 revenues Variable cash $200.000 expenses Contribution $300,000 margin Fixed cash $150,000 expenses Depreciation $45.000 Operating $105,000 income The company's required rate of return is 12%. What is the project's payback period? O 3 years O 2 years 4.28 years 9 years None of the above RAM Corporation recently accepted an investment opportunity that requires a $400,000 cash investilent in an asset with a useful life of 20 years. The investment has a payback period of 8 years and the asset has no salvage value. The asset is depreciated using the straight-line method. What is the accounting rate of return on RAM's investment? 8.67% 0 7.50% 0 5.00% O 15.67% O None of the above Satellite Inc. is considering an investment in technology infrastructure that requires a working capital outlay of $1,550,000. The project would generate cash inflows of $177,000 per year for the duration of the project's life, which is seven years. The working capital would be released for use elsewhere when the project is completed. If the company's discount rate is 10%, then what would be the project's net present value? (Note: There may be rounding error depending on the discount factor you use. Choose the answer closest to the one you calculate.) O $1,656,786 $106,786 ($688,364) $24,350 O $529,290 Cecelia Verdon operates an after-hours nightclub. She estimates a new VOID Acoustics sound system with a 4-year useful life will generate increased cash inflows of $135,000 per year for each year the equipment is in use. Cash operating expenses associated with the new equipment will be $10,000 per year. The equipment will have no salvage value at the end of its useful life. If Miss Verdon's required rate of return is 10%, then what is the most she should be willing to pay for the new VOID sound system? (Note: There may be rounding error depending on the discount factor you use. Choose the answer closest to the one you calculate.) O $300,150 $335,000 O $396,250 $447.950 $500,000