Hayden Company is considering the acquisition of a machine that costs $392,000. The machine is expected to have a useful life of six years, a negligible residual value, an annual net cash flow of $89,000, and annual operating income of $75,650. What is the estimated cash payback period for the machine (round to one decimal points)?  a.5.2 years b.6.4 years c.4.4 years d.1.2 years

Foster Company wants to buy a special automated machine to replace an existing manual system.  The initial outlay (cost) is $3,500,000.  The new machine will last 5 years with no expected salvage value.  The expected annual cash flows are as follows:                 Year Cash Inflow Cash Outflow           0  $                            -    $          3,500,000.00           1  $        3,900,000.00  $          3,000,000.00           2  $        3,900,000.00  $          3,000,000.00           3  $        3,900,000.00  $          3,000,000.00           4  $        3,900,000.00  $          3,000,000.00           5  $        3,900,000.00  $          3,000,000.00                           Foster has a cost of capital equal to 10%.                           1.   Calculate the payback period.       Payback period:   years

Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $166,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $32,982. Click here to view the factor table. What is its approximate internal rate of return? (Round answer to O decimal place, e.g. 13%.) Internal rate of return %

Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $137,956. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,900, and annual cash outflows would increase by $42,000. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.52.) Cash payback period _________? enter the Cash payback period in years rounded to 2 decimal places years.

The following present value factors are provided for use in this problem. Periods 1 2 3 4 Present Value of $1 at 8% 0.9259 0.8573 0.7938 0.7350 Xavier Co. wants to purchase a machine for $37,800 with a four year life and a $1,200 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $12,800 in each of the four years. What is the machine's net present value? Multiple Choice O O $4,595. $(5,477). $(4,595). Present Value of an Annuity of $1 at 8% 0.9259 1.7833 2.5771 3.3121 $43,277.

Domestic

Rihanna Company is considering purchasing new equipment for $440,000. It is expected that the equipment will produce net annual cash flows of $55,000 over its 10-year useful life. Annual depreciation will be $44,000. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period years

Calculate the present worth of all costs for a newly acquired machine with an initial cost of $24,000, no trade-in value, a life of 11 years, and an annual operating cost of $14,000 for the first 6 years, increasing by 10% per year thereafter. Use an interest rate of 10% per year.   The present worth of all costs for a newly acquired machine is determined to be $

The Marigold Company is planning to purchase $577,000 of equipment with an estimated seven-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment. Year 1 2 3 456 7 Total Projected Cash Flows $214,000 169,500 124,500 Payback period 55,200 55,200 48,500 The company 48,500 (a) Calculate the payback period for the proposed equipment purchase. Assume that all cash flows occur evenly throughout the year. $715,400 years and (b) If Marigold requires a payback period of 4 years or less, should the company make this investment? months. make this investment.

Riordan Manufacturing is considering an investment in new equipment that will produce equal annual cash flows of $52,000 for 8 years and has a net present value of $94,182. The initial investment is $247,000, the useful life is 8 years, and the equipment's salvage value after 8 years is $26,000. What is the equipment's profitability index? Round your answer to two decimal places. 6.56 1.38 4.75 1.81