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would the company have to experience to make the machine an acceptable investment if the minimum desired rate of return is 1 8 % ?

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would the company have to experience to make the machine an acceptable investment if the minimum desired rate of return is 18%?
a. $28,810.41
b. $62,500.00
c. $77,500.00
d. $39,687.14
9. The payback period of an investment is useful in determining its:
a. net present value.
b. overall profitability.
c. acceptability in terms of the length of time until the invested funds are free for use elsewhere.
10. Jacobs Co. is considering buying several specialized tools at a cost of $5,000. The new tools will save the company $1,500 in manufacturing costs each year and are expected to last 4 years. Assume salvage is $0 and the tax rate is 34%. Jacobs Co. uses MACRS 200% Declining Balance method to compute depreciation for income tax purposes. The 200% Declining Balance depreciation rates are: 33.33% in year 1,44.45% in year 2,14.81% in year 3, and 7.41% in year 4. Using a minimum desired after-tax rate of return of 12%, the net present value of the tool purchase would be: (include the effects of taxes)
a. $124.69
($625.76)
c.($437.95)
d. $836.47
11. Extra Credit (1 pt): Refer to #10 above. Assume salvage is $1,000 and that Jacobs uses the straight-line method to compute depreciation for tax purposes. For tax purposes, these tools will be depreciated over a 3year life under the assumption they were purchased mid-way through the first year and that residual value is $0(Hint: use depreciation rates of 16 in year 1,13 in year 2,13 in year 3, and 16 in year 4). Using a minimum desired after-tax rate of return of 10%, the net present value of the tool purchase would be: (include the effects of taxes)
a.($379.28)
$986.34
c.($66.22)
d. $125.72
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