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b)

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b)

Brady Corp. is considering the purchase of a piece of equipment with the following projected net annual cash flows over the project's life. Year Net Annual Cash Flows 1 $3,000 2 $8,000 3 $15,000 4 $9,000 1. What is the cash payback period if the equipments costs $20,000? a 2.29 years. b. 2.60 years. c. 2.40 years. d. 2.31 years. Bradshaw Inc. is contemplating a capital investment with the following cash flows over the doo project's four years are: wo Expected Annual Cash Inflows Expected Annual Cash Outflows Year 1 $30,000 $12,000 2 $45,000 $20,000 3 $60,000 $25,000 4 $50,000 $30,000 2. What is the cash payback period if the capital investment is $88,000? a 3-59 years. b. 3-50 years. 2.37 years. d. 3.20 years. doba An investment project had the following factors: Internal rate of return factor 4.0 Equal annual cash inflows $18,000 a. 1. What is the original investment the project: $18,000. b. $4,500.dla $72,000. c. An equipment purchase has following factors: Purchase Price $60,000 Useful Life 6 years Annual Cost Savings $14,600 Salvage Value 0 Depreciation Method Straight-Line Present Value of an Annuity of 1 Period 8% 9% 10% 12% 15% 6 4.623 4.486 4-355 4.111 3.784 2. What is the approximate internal rate of return for this investment? a 9% b. 10% c. 11% d. 12%