Veritas Ltd is considering investing in a new machine which costs $450 000. For accounting purposes this machine can be fully depreciated over 6 years; but for tax purposes, the machine can be fully depreciated over 5 years. The machine has no resale value. The annual cost savings resulting from the purpose of this machine is $100 000. Assume a tax rate of 30 per cent. The annual net cash flow is: A. $97 000. B. $92 500. C. $17 500. D. $7000. Veritas Ltd is considering investing in a new machine which costs $450 000. For accounting purposes this machine can be fully depreciated over 6 years; but for tax purposes, the machine can be fully depreciated over 5 years. The machine has no resale value. The annual cost savings resulting from the purpose of this machine is $100 000. Assume a tax rate of 30 per cent. The payback period is: A. 6.43 years. B. 5.71 years. C. 4.64 years. D. 4.50 years. Cubbies Pty Ltd is considering the purchase of a new machine to replace an old machine. Selected cost data pertaining to the two machines is provided below. At the end of four years, the company plans to discontinue the product line for which the machines are used. Income taxes can be ignored. Calculate the net present value of the new machine, if Cubbies Pty Ltd's hurdle rate is 14 per cent. A. 1.6%. B. 3.9%. C. 21.6%. D. 22.2% Volo Ltd has recently purchased two machines at $50 000 each. Each machine has a useful life of 5 years, and will be fully depreciated at the end of their useful lives. The government provides an investment allowance of 15 per cent. The tax rate is 30 per cent. The net cash flow impact of the investment allowance is: A. $900. B. $4500. C. $5250. D. $15 000