Urgrnt

Sad Company is considering the purchase of a new machine that would cost $80,000. The machine would have a useful life of 8 years. Sad Company plans on using straight-line depreciation with an estimated salvage value of 50 . Sad Company has a hurdle rate of 12% and is subject to an income tax rate of 80%. The annual cash income is estimated to be $50,000. PV TABLES CAN BE FOUND ON PAGE 13. 1. The Accounting Rate of Return (AROR) is: A. 10% B. 11% C. 12% D. 9% E. 8% 2. The Net Present Value (NPV) is: A. $10,424 B. $9,424 C. $11,424 D. $8,424 E. $11,424 3. The Profitability Index (PI) is: A. 1.02 B. 1.12 C. 1.22 D. 0.92 E. 0.82 4. The Payback period is: A. 4.044 years B. 4.144 years C. 4.244 years D. 4,344 years E. 4.444 years 5. Using interpolation, the Internal Rate of Return (IRR) is: A. 14.4% B. 13.4% C. 12.4% D. 15.4% E. 16.4%