5)       Select the set corresponding to  .

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)

Crystal Tech has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment $ 32,000   Annual cash inflows  $ 6,800   Salvage value of equipment $ 0   Life of the investment 15 years Required rate of return 10%   Crystal uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. Note: You will need the PV tables for this question. The internal rate of return of the investment is closest to: 

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.

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:

Maple Thread Inc. has gathered the following data on a proposed investment project (Ignore income taxes.): Investment in depreciable equipment $ 640,000   Annual net cash flows  $ 86,000   Life of the equipment 20 years Salvage value $ 0   Discount rate 9%   Maple uses straight-line depreciation on all equipment. Assume that cash flows occur uniformly throughout each year, except for the initial investment. The payback period for the investment is closest to:

Nest and Co. is considering the acquisition of a new machine that costs $355,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that the machine would produce are (Ignore income taxes.):   Incremental Net Operating Income Incremental Net Cash Flows Year 1 $ 62,000 $ 148,000 Year 2 $ 68,000 $ 154,000 Year 3 $ 79,000 $ 165,000 Year 4 $ 42,000 $ 128,000 Year 5 $ 84,000 $ 170,000 Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period of this investment is closest to:

Nest and Co. is considering the acquisition of a new machine that costs $355,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that the machine would produce are (Ignore income taxes.):   Incremental Net Operating Income Incremental Net Cash Flows Year 1 $ 62,000 $ 148,000 Year 2 $ 68,000 $ 154,000 Year 3 $ 79,000 $ 165,000 Year 4 $ 42,000 $ 128,000 Year 5 $ 84,000 $ 170,000 Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period of this investment is closest to:

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.

Cedar House Corp. has not yet decided on the required rate of return to use in its capital budgeting. This lack of information will prevent Cedar House from calculating a project’s:   Payback Net Present Value Internal Rate of Return 1) No No No 2) Yes Yes Yes 3) No Yes Yes 4) No Yes No