Question: Although i have the correct answers please solve it step b step. Question 1 Salem is considering buying a machine that will have the following

Although i have the correct answers please solve it step b

Although i have the correct answers please solve it step b step.

Question 1 Salem is considering buying a machine that will have the following cash flow. Calculate the Payback for the purchase to the nearest hundredth of a year. Year 0 1 2 3 5 Cash flows -$975 $300 $310 $320 583 $57 Correct Answer: 3.54 +0.05 Question 2 The Derry Corp. is considering a three-year project. Assume straight-line depreciation with no salvage value remaining. Calculate the NPV to the nearest cent WACC 9.4% Additional investment in fixed assets at t= 0 $75.000 Annual sales (constant for three years starting t= 1) $75,000 Operating costs (excl. depreciation) (also constant also 3 years $25,000 Tax rate 21.0% Correct Answer: 37.472.75 +1

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