Question: Please answer whatever is possible ! cils and simple calculators. Calculate stions involving present value will not be co unted. Please sign out with your

Please answer whatever is possible !

 Please answer whatever is possible ! cils and simple calculators. Calculate

cils and simple calculators. Calculate stions involving present value will not be co unted. Please sign out with your 1. An investment will generate annual CFAT (cash flows after taxes) of $630,000. It would cost $1,680,000 to acquire and should last five years with no salvage value expected. The payback period for this investment is: a. 6.27 years b. 2 years and 6 months c. 2 years and 8 months d. 2.8 years 2. Refer to the preceding question. The investment's accounting rate of return using its initial investment and straight-line depreciation is: a. 35% b. 17.5% C. d. 25.4% Cannot be determined from the given information 3. The Queens Co. estimates it can save $4,200 per year in cash operating costs for the next 10 years if it buys a special-purpose machine at a cost of $16,500. No salvage value is expected. The company's minimum required rate of return is 14%. a. The investment is acceptable because the c. The project is acceptable because the IRR NPV is positive. is less than the cost of capital rate. b. The investment should be rejected because d. The project should be rejected based on its the NPV is negative. IRR. 4. Refer to question 3. The NPV is (rounded): a. $16,500 c. $5,407 b. $21,900 d. ($5,407) 5. The reason depreciation must be considered in a NPV analysis is: a. Depreciation is a cash flow item c. Depreciation should not be considered b. Depreciation has no tax effects d. Depreciation can save income taxes 6. A company is considering investing in one of two machines: one new and one it already has been using old machine, acquired three years ago, has four years of remaining life, what is the present value of the savings generated by straight-line depreciation over its remaining life. The original cost of the machine $448,000. The cost of capital is 12% and the tax rate = 40%. Round to nearest whole dollar. a. $25,600 c. $112,000 b. $77,747 d. $136,058 7. The cost of equipment is $168,000; the useful life is 6 years. Salvage value is zero and the cost of c 10% and the tax rate = 30%. The present value of the tax savings resulting from the double-declini method of depreciation is approximately (round to the nearest whole dollar)

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