X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $60,000 per year; operating costs with the new machine are expected to be $45,000 per year. The new machine will cost $70,000 and will last for 6 years, at which time it can be sold for $4,000. The current machine will also last for 6 more years but will have zero salvage value. Its current disposal value is $7,000. Assuming a discount rate of 8%, what is the net present value of replacing the current machine? [Note: For the capital budgeting questions, use the Present Value tables in the Coursepack or with the link after the last exam question.] A: $3,768 B: $5,012 C: $6,665 D: $8,865 E: $11,790 F: $15,681 Submit Answer Tries 0/99 X Company is considering buying a new machine that will cost $150,000 and that will generate annual cash inflows of $29,550 for 6 years. What is the approximate internal rate of return (as a decimal, so 1% would be 0.01)? A: 0.03 B: 0.04|C: 0.05 D: 0.06 E: 0.07 F: 0.08 Submit Answer Tries 0/99 For 2019, X Company estimated production of 3,400 units of finished product and direct material cost of $23,630. Actual production in 2019 was 2,500 units of finished product, and actual direct material cost was $19,520. What was the direct material flexible budget variance for 2019 (a positive number means a favorable variance; a negative number means an unfavorable variance)? A: $-2,145 B: $14,353 C: $17,375 D: $19,520 E: $25,993 F: $26,547 Submit Answer Tries 0/99