The internal rate of return method assumes that a project’s cash flows are reinvested at the:

Which of the following statements is true? In the payback method, depreciation is added back to net operating income when computing the annual net cash flow. When a company is cash poor, a project with a short payback period but a low rate of return may be preferred to a project with a long payback period and a high rate of return. A shorter payback period does not necessarily mean that one investment is more desirable than another.

When the level of glucose in the blood rises, chemoreceptors in the body detect this change. The pancreas receives this input, and makes the decision to produce a hormone (insulin) that leads to the liver taking the excess glucose so that blood glucose levels return to normal. In this example, which structure is acting as the control center?

Pixel Forge Co. is investigating an investment in machinery that is expected to have a useful life of 7 years. The company uses a discount rate of 15% in its capital budgeting. The net present value of the investment, excluding the salvage value, is −$580,450. (Ignore income taxes.) How large would the salvage value of the machinery have to be for the investment in it to be financially attractive? Note: You will need the PV tables for this question.

North Pine Partners is considering the purchase of a machine that would cost $240,000 and would last for 10 years. At the end of 10 years, the machine would have a salvage value of $21,500. By reducing labor and other operating costs, the machine would provide annual cost savings of $37,000. The company requires a minimum pretax return of 10% on all investment projects. (Ignore income taxes.) Please use PV tables to complete this problem. The net present value of the proposed project is closest to: Note: please format your response rounded to the nearest whole dollar and please place dollar signs inside parentheses; i.e., $0,000 or ($0,000)

Copper Labs has invested in a machine that costs $78,000, has a useful life of six years, and has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. The machine will have a payback period of four years. Given these data, the simple rate of return on the machine is closest to (Ignore income taxes.):

Beacon Inc. is considering buying a new machine. This machine will replace an old machine that still has a useful life of 6 years. The new equipment will cost $3,610 per year to operate, compared to the old equipment, which costs $3,825 per year to operate. Additionally, due to increased capacity, an additional 20,100 units can be produced each year. The company makes a contribution margin of $0.10 per unit. The old machine can be sold for $7,100, and the new machine costs $30,100. The incremental annual net cash inflows provided by the new machine would be (Ignore income taxes.):

The following data pertain to an investment proposal (Ignore income taxes.). Please use PV tables to complete this problem. Cost of the investment $ 44,000   Annual cost savings  $ 14,000   Estimated salvage value $ 3,000   Life of the project 5 years Discount rate 13%   The net present value of the proposed investment is closest to:

Ridge Outfitters is considering a project that would require an investment of $334,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows (Ignore income taxes.): Sales $ 230,000 Variable expenses 18,000 Contribution margin 212,000 Fixed expenses:   Salaries 36,000 Rents 49,000 Depreciation 44,000 Total fixed expenses 129,000 Net operating income $ 83,000 The scrap value of the project’s assets at the end of the project would be $26,000. The cash inflows occur evenly throughout the year. The project’s payback period is closest to:

River and Co. is considering purchasing a machine that would cost $457,050 and have a useful life of 7 years. The machine would reduce cash operating costs by $83,100 per year. The machine would have a salvage value of $107,120 at the end of the project. (Ignore income taxes.) Compute the payback period for the machine. Note: please round to two decimal places: i.e., 0.00