6) Cash flows used in net present value and internal rate of return analyses ignore A) future increased sales B) future cost savings C) depreciation expense D) residual value 7) Manko Corporation is considering an investment in new equipment costing $918,000. The equipment will be depreciated on a straight-line basis over a ten-year life and is expected to have a residual value of $98,000. The equipment is expected to generate net cash flows of $152,000 for each of the first five years and $116,000 for each of the last five years. What is the accounting rate of return associated with the equipment investment? (Round your answer to two decimal places.) A) 10.95% B) 11.34% C) 9.05% D) 10.24% 8) Shahab Moving Company is considering purchasing new equipment that costs $728,000. Its management estimates that the equipment will generate cash flows as follows: Year 1 2 3 $214,000 214,000 264,000 264,000 150,000 5 Present value of $1: 8% 0.926 0.857 6% 0.943 0.890 0.840 0.792 0.747 7% 0.935 0.873 0.816 0.763 0.713 9% 0.917 0.842 0.772 0.708 0.650 10% 0.909 0.826 0.751 0.683 0.621 0.794 0.735 0.681 The company's annual required rate of return is 9%. Using the factors in the table, calculate the present value of the cash flows. (Round all calculations to the nearest whole dollar.) A) $892,000 B) $864,646 C) $853,320 D) $894,000