TB Problem Qu. 13-147 Ursus, Inc., is considering a project... Ursus, Inc., is considering a project that would have a five-year life and would require a $775,000 investment in equipment. At the end of five years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows (Ignore Income taxes.): $1,900,000 1,300,000 600,000 Sales Variable expenses Contribution margin Fixed expenses: Fixed out-of-pocket cash expenses Depreciation Net operating income $350,000 155,000 505,000 95,000 $ Click here to view Exhibit 138-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. All of the above items, except for depreciation, represent cash flows. The company's required rate of return is 7%. Required: a. Compute the project's net present value. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) b. Compute the project's internal rate of return. (Round your final answer to the nearest whole percent.) c. Compute the project's payback period. (Round your answer to 2 decimal place.) d. Compute the project's simple rate of return. (Round your final answer to the nearest whole percent.) % . Net present value b. Internal rate of return c. Payback period d. Simple rate of return years % TB Problem Qu. 13-156 Joanette, Inc., is considering the purchase... Joanette, Inc., is considering the purchase of a machine that would cost $670,000 and would last for 10 years, at the end of which, the machine would have a salvage value of $57,000. The machine would reduce labor and other costs by $117,000 per year. Additional working capital of $3,000 would be needed immediately, all of which would be recovered at the end of 10 years. The company requires a minimum pretax return of 13% on all investment projects. (gnore income taxes.) Click here to view Exhibit 138-1 and Exhibit 138-2 to determine the appropriate discount factor(s) using the tables provided Required: Determine the net present value of the project. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.) Net present van TB Problem Qu. 13-171 Devon Corporation uses a discount... Devon Corporation uses a discount rate of 8% in its capital budgeting. Partial analysis of an investment in automated equipment with a useful life of 6 years has thus far yielded a net present value of -$497,341. This analysis did not include any estimates of the intangible benefits of automating this process nor did it include any estimate of the salvage value of the equipment. (Ignore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using the tables provided. Required: a. Ignoring any salvage value, how large would the additional cash flow per year from the Intangible benefits have to be to make the investment in the automated equipment financially attractive? b. Ignoring any cash flows from intangible benefits, how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive? (Round your final answers to the nearest whole dollar amount.) . Minimum annual cash flows D. Minimum salvage value TB Problem Qu. 13-177 Russnak Corporation is investigating... Russnak Corporation is investigating automating a process by purchasing a new machine for $504,000 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $140,000 per year in cash operating costs. The company's current equipment would be sold for scrap now, yielding $34,000. The annual depreciation on the new machine would be $56,000. (Ignore income taxes.) Required: Determine the simple rate of return on the investment. (Round your answer to 1 decimal place.) Simolare of return