as A Using the net present value method,what is the maximum amount that the $15.556 d 534,344 Annual net cash ows are defied as d. annual cash inflows minus capital investment revenues are received in cash and expenses, except for depreciation, are paid in cash, net cash flows for a period are equal to a. net income minus depreciation expense. b. net income. net income plus depreciation d. net income plus income tax expense 38. 2-4-2 Inc, is expected to have the following cash revenues and expenses (other than depreciation) in 2007: Sales $80,000 Selling, general, & administrative expenses 10,000 5,000 3,000 45,000 (excluding depreciation) preciation expense Income tax expense Cost of goods sold 2-4-2's estimated 2007 net cash flows are a. $19,000. b. $17,000. C$22,000 d. $12,000. The payback period method measures a. the profitability of an investment. b. the cash flows from an investment. c. how quickly investment dollars may be recovered 39. d. the economic life of an investment Use the following to answer questions 40-41: San Diego Enterprises is planning to invest in a five-year project costing $270,000. The project is expected generate annual cash revenues of $90,000 and annual cash expenses (including depreciation) of $30,000 estimated residual value is $20,000 The project's payback period is a. 3.25 years b. 5 years 40. c. 3 years d. 4.5 years. Page 5 of 7