The following information is available for a potential investment the Lee Corporation is considering: Initial Investment $120,000 Annual net cash flows 27,500 Annual net income 15,000 Salvage value 20,000 Useful life 8 years The investment's payback period is closest to: a. 3.6 years b. 6.7 years c.4.4 years d.5.1 years Garcia Company currently manufactures party decorations. The costs to produce one of its products Congratulations Banners are provided below. Cost per unit Direct materials $ 2 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total Garcia was approached by a customer who would like to make a one-time order for 500 of the Congratulations Banners at a price of $7.00 each. The company has excess capacity that could be used to produce the banners without reducing sales to regular customers. The special order would have no effect on Garcia's fixed manufacturing overhead but it would require Garcia to use a different material for the banners, increasing direct materials costs to $3 per unit. The financial advantage (disadvantage) of accepting the special order is: a. ($1,500) b. ($500) C. $500 d. (1,000)