The payback method fails to focus on: A. profitability B. time to recover initial investment O C. initial investment amount D. net cash flows Assume you invest $20,000 today. How much will you have in six years at an interest rate of 9%? Future Value of $1: 8% 1 1.080 2 1.166 3 1.260 4 1.360 5 1.469 6 1.587 9% 1.090 1.188 1.295 1.412 1.539 1.677 10% 1.100 1.210 1.331 1.464 1.611 1.772 O A. $35,440 B. $31,740 C. $33,540 D. $30,780 Which of the following recognizes the time value of money? O A. Net cash flows O B. ARR C. NPV OD. Payback period is the value of an investment at the end of a specific time period. O A. Present value B. Future value C. Compound interest O D. Simple interest Tucker Manufacturing is considering investing in specialized equipment costing $849,000. The equipment has a useful life of five years and a residual value of $71,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are given below: Year 1 2 3 $313,000 353,000 362,000 197,000 240,000 $1,465,000 4 5 Total What is the average amount invested? O A. $732,500 B. $460,000 C. $424,500 D. $389,000 Assume you invest $20,000 today. How much will you have in six years at an interest rate of 9%? Future Value of $1: 8% 1 1.080 2 1.166 3 1.260 4 1.360 5 1.469 6 1.587 9% 1.090 1.188 1.295 1.412 1.539 1.677 10% 1.100 1.210 1.331 1.464 1.611 1.772 A. $35,440 B. $31,740 C. $33,540 D. $30,780