x Your answer is incorrect. A company is considering purchasing factory equipment that costs 5504000 and is estimated to have no salvage value at the end of its 8-year useful life. If the equipment is purchased, annual revenues are expected to be $135000 and annual operating expenses exclusive of depreciation expense are expected to be $39000. The straight-line method of depreciation would be used. The cash payback period on the equipmentis 2.7 years. 15.3 years 8.0 years 5.3 years Save for Later Current Attempt in Progress Periods 9% 1 Present Value of an Annuity of 1 10% 0.926 0.917 0.909 1.783 1.759 1.736 2.577 2.531 2.487 2 3 A company has a minimum required rate of return of 9%. It is considering investing in a project that costs $174000 and is expected to generate cash inflows of $71000 at the end of each year for three years. The net present value of this project is $35500 $5701 $179701 $17970 Swifty receitly invested in a project with a 3 var lite spars. The representano wa 1970 for year 1:517000 for year 2. and $15.00 for yeat 3. The initial investment for the projectmaninga 156 adet PV of an Annuity Present Value Year of lat 15% 1 0.870 2 0.756 3 0/658 oat:1538 0.870 2:283 $32386 527358 $32204 $38170 Skysong, Inc. is considering purchasing equipment costing $54000 with a 6-year useful life. The equipment will provide annual cost savings of $13600 and will be depreciated straight-line over its useful life with no salvage value, Skysong requires a 10% rate of return Period 6 8% 4.623 Present Value of an Annuity of 1 9% 10% 11% 12% 15% 4.486 4355 4.231 4.111 3.784 What is the approximate profitability index associated with this equipment? 1.26 1.07 1.10 0.73