Acompany is planning to purchase a machine that will cost $54.000 with a six-year life and no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected Income statement for each year of the asset's life appears below. What is the payback period for this machine? $ 126,000 Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses Income before taxes Income tax (40%) Net income $64,000 9, eee 42,800 (115,000) $ 11,000 (4,400) $ 6,600 A company is planning to purchase a machine that will cost $25,800 with a six-year life and no salvage value. The company uses straight-line depreciation. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine? $ 92,000 Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses Income before taxes Income tax (30%) Net income 552,200 4,300 32,000 (88,500) $3,500 (1,0) $2,450 The following relates to a proposed equipment purchase: ed Cost Salvage value Estimated useful life Annual net cash flows Depreciation method $128,800 $ 3,200 4 years $ 45, 300 Straight-line The annual average investment amount used to calculate the accounting rate of return is: The following relates to a proposed equipment purchase: Cost Salvage value Estimated useful life Annual net cash flows Depreciation method $ 146,000 $ 5,000 4 years $ 47,100 Straight-line Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is: Butler Corporation is considering the purchase of new equipment costing $81.000 The projected annual after-tax net income from the equipment is $2.900, after deducting $27.000 for depreciation. The revenue is to be received at the end of each year The machine has a useful life of 3 years and no salvage value Butler requires a 10% return on its investments. The present value of an annuity of $1 for different periods follows: Periods 1 2 3 4 10% 0.9091 1.7355 2.4869 3.1699 What is the net present value of the machine? 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 0.735@ Present Value of an Annuity of $1 at 8% 0.9259 1.7833 2.5771 3.3121 Xavier Co wants to purchase a machine for $36,900 with a four year life and a $1,200 salvage value Xavier requires anyo return on investment. The expected year-end net cash flows are $11.900 in each of the four years What is the machines ner present value