The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment $60,000 $ 3,000 BOOWN Cash Inflow $ 4,000 $ 8,000 $ 16,000 $17,000 $20,000 $18,000 $ 16,000 $14,000 $13,000 $13,000 Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in the last year were several times as large? Complete this question by entering your answers in the tabs below. Required Required Determine the payback period of the investment. (Round your answer to 1 decimal place.) Payback period years Perit Industries has $155,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project A Project B Cost of equipment required $155,000 $ 0 Working capital investment $ 0 $155,000 required Annual cash inflows $ 25,000 $ 57,000 Salvage value of equipment ins 9.600 S six years Life of the project 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 15%. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project A. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.) 2. Compute the net present value of Project B. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.) 3. Which investment alternative (if either) would you recommend that the company accept? 1. Net present value project A 2. Net present value project B Which investment alternative (if 3. either) would you recommend that the Project B company accept? Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division's return on investment (ROI), which has been above 20% each of the last three years. Derrick is considering a capital budgeting project that would require a $3,050,000 investment in equipment with a useful life of five years and no salvage value. Holston Company's discount rate is 16%. The project would provide net operating income each year for five years as follows: $2,600,000 1,050,000 1,550,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $600,000 610,000 1,210,000 $ 340,000 Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the project's net present value. 2. Compute the project's simple rate of return. 3a. Would the company want Derrick to pursue this investment opportunity? 3b. Would Derrick be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Compute the project's net present value. (Round your final answer to the nearest whole dollar amount.) Net present value Req 1 Req 2 Req 3A Req 3B Corbalhe project's simple rate of return. (Round your answer to 1 decimal place i.e. 0.1 Req 1 be considered as 12.3%.) Simple rate of return