Abbey Manufacturing is considering an investment in a new automated manufacturing system. The new system requires an investment of $1,200,000 and either has: a. Even cash flows of $600,000 per year or b. The following expected annual cash flows: $150,000, $150,000, $400,000, $400,000, and $100,000. Required: Calculate the payback period for each case. Round your answer to one decimal place. a. years b. years

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You are operating an old machine that is expected to produce a cash inflow of $5,100 in each of the next 3 years before it fails. You can replace it now with a new machine that costs $20,100 but is much more efficient and will provide a cash flow of $10,150 a year 4 years. Calculate the equivalent annual cost of the new machine if the discount rate is 14%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Equivalent ann the purchase price Should you replace your equipment now? Yes No

The Gables manufacturing Company is looking to replace its conveyor belt system. A new system will cost $345,000, and will result in cost savings of $220,000 in the first year, followed by savings of $100,000 per year over the following 3 years. If the firm’s cost of capital is 9%, what is the discounted payback period for this project? (Do not round intermediate computations. Round final answer to two decimal places.) A. 2.76 years B. 2.58 years C. 2.25 years D. 2.40 years Thank you.