2037 Lab 8 Assignment 5) Porter Co. is analyzing two projects for the future. Assume that only one project can be selected Proisct fthe company is using the payback pero d method and it requires a payback ofthree years or less, which project should be selected? 6) The expected amount of time to recover the initial amount of an investment is called the: A) Amortization period. B) Payback period. C) Interest period. D) Budgeting period E) Discounted cash flow period. 7) A company is considering parchasing a machine for $21,000. The machine will generate an after-tax net income of $3,000 per year. What is the payback period for the new machine? 8) The following data concerns a proposed equipment purchase: Cost Salvage value Estimated useful life Annual net cash flows46,100 $144,000 4,000 4 years Straight-line Depreciation method.. The annual average investment amount used to calculate the accounting rate of return is: 9) A company is considering purchasing a machine for $21,000. The machine will generate an after-tax net income of $2,000 per year. Annual depreciation expense would be $1,500. The machine has no salvage value. What is the approximate accounting rate of return