The Scanning Photo Company would like to purchase a new photo scanner for $85,000. The scanner is expected to generate a cost savings of $23,000 per year for five years. The company's cost of capital is 8 percent. Factors for an 8 percent interest rate for five years are shown below:

Future Value of $1	1.470
Present Value of $1	0.681
Future Value of an Annuity	5.867
Present Value of an Annuity	3.993

The net present value of the project is (round all calculations to the nearest dollar):

Group of answer choices

$2,193

$6,839

$91,839

$49,941

Smithson Company is considering a $400,000 capital investment project, with the following cash flows:

Year	Cash Flow
1	$ 80,000
2	190,000
3	90,000
4	40,000
5	60,000
6	40,000

Rounded to the nearest month, what is the cash payback period?

Group of answer choices

4 years.

3 years.

3 years, 7 months.

3 years, 5 months.

Tyson Products LLC wants to buy a new machine and has narrowed its options to two choices. Both machines cost $40,000. The following data shows the expected cash inflows from each machine:

Year	Machine #1	Machine #2
1	$60,000	$20,000
2	0	20,000
3	0	20,000

When figuring net present value, the company uses the same cost of capital for both machines and both machines have a positive net present value.

Based on this information, which statement is true?

Group of answer choices

Machine # 1 will have a higher net present value than Machine #2.

Machine # 1 will have a lower net present value than Machine #2.

Machine # 1 and Machine #2 will have the same net present values.

Machine # 1 and Machine #2 will have the same internal rates of return.