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You are planning to buy a new machine for $8,000. The machine will generate net cash flows of $1,000 a year for the next 100

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You are planning to buy a new machine for $8,000. The machine will generate net cash flows of $1,000 a year for the next 100 years. The discount factor is 0.5. Annual depreciation is $400 a year. Compute the payback period. A. 0.125 years B. 8 years C. 13.33 years D. 16 years E. not enough information - depends on the time value of money 100 years from now You invested in a new machine. The beginning book value of the machine is $1,000 and the ending book value 10 years later is zero. The machine will generate net cash flows of $250 a year for 10 years. Compute the ARR(accounting rate of return). A. 15% B. 25% C. 30% D. 50%. E. not enough information - need to know accounting income and accounting depreciation Total sales revenue is $1,000, total variable costs are $600, and total fixed costs are $1,000. The is $5 per unit. Compute the break-even volume in units (assume that the break-even point is relevant range). A. not enough information B. 333.3 units C. 500 units D. 560 units E. 2, 500 units

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