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The following data pertain to an investment that is being considered by the management of Hanson Company: Discount rate 10% Life of the project 5

The following data pertain to an investment that is being considered by the management of Hanson Company:

Discount rate 10%
Life of the project 5 years
Cost of the investment $22,746
Annual cost savings 6,000
Salvage value 1,200

The net present value of the proposed investment is (Round your intermediate calculations to 3-decimals and your present value calculations to the nearest dollar amount.):

$0.

$22,746.

$745.

$745.

A project with a 8-year life has tangible costs and benefits with a $165,000 negative net present value. The companys discount rate is 9%. The amount of annual cash inflow would have to be provided by the projects intangible benefits in order for the project to be acceptable is (Round your intermediate calculation to 3-decimals and final answer to the nearest dollar amount.):

$29,810.

$32,064.

$165,000.

$194,810.

Hamell Company has gathered the following data on a proposed investment project:

Discount rate 10%
Life of the project 10 years
Initial investment $439,900
Annual cash inflows 83,000
Salvage value 0

The payback period for the proposed investment is closest to (Round your answer to 2 decimal places.):

5.30 years.

0.19 years.

0.99 years.

2.99 years.

Hamell Company has gathered the following data on a proposed investment project:

Discount rate 8%
Life of the project 8 years
Initial investment $420,000
Annual cash inflows 88,200
Salvage value 0

Assume that excess of incremental revenues over the incremental expenses (including depreciation) equal the annual cash inflows. The simple rate of return on the proposed investment is closest to: (Round your answer to 1 decimal place.)

31.0%.

41.0%.

11.0%.

21.0%.

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