A company has purchased a small auto for delivering orders. The auto was purchased for $29,000 and will have a 6-year useful life and a $4,100 salvage value. Delivering orders should increase gross revenues by at least $16,900 per year. It will  cost the company about $10,000 a year to make the deliveries.  The company depreciates all assets using the straight-line method. The payback period for the auto is closest to: (Round your answer to 1 decimal place.)

A corporation is considering a capital budgeting project that would require an initial investment of $450,000 and working capital of $25,000. The working capital would be released for use elsewhere at the end of the project in 4 years. The investment would generate annual cash inflows of $143,000 for the life of the project. At the end of the project, equipment that had been used in the project could be sold for $10,000. The company’s discount rate is 14%. The net present value of the project is closest to:Present Value of $1; 1 ( 1 + r ) nPeriods4%5%6%7%8%9%10%11%12%13%14%15%10.9620.9520.9430.9350.9260.9170.9090.9010.8930.8850.8770.8720.9250.9070.890.8730.8570.8420.8260.8120.7970.7830.7690.75630.8890.8640.840.8160.7940.7720.7510.7310.7120.6930.6750.65840.8550.8230.7920.7630.7350.7080.6830.6590.6360.6130.5920.57250.8220.7840.7470.7130.6810.650.6210.5930.5670.5430.5190.49760.790.7460.7050.6660.630.5960.5640.5350.5070.480.4560.43270.760.7110.6650.6230.5830.5470.5130.4820.4520.4250.40.37680.7310.6770.6270.5820.540.5020.4670.4340.4040.3760.3510.327Present Value of an Annuity of $1 in Arrears; 1 r Periods4%5%6%7%8%9%10%11%12%13%14%15%10.9620.9520.9430.9350.9260.9170.9090.9010.8930.8850.8770.8721.8861.8591.8331.8081.7831.7591.7361.7131.691.6681.6471.62632.7752.7232.6732.6242.5772.5312.4872.4442.4022.3612.3222.28343.633.5463.4653.3873.3123.243.173.1023.0372.9742.9132.85554.4524.3294.2124.13.9933.893.7913.6963.6053.5173.4333.35265.2425.0764.9174.7674.6234.4864.3554.2314.1113.9983.8893.78476.0025.7865.5825.3895.2065.0334.8684.7124.5644.4234.2884.1686.7336.4636.215.9715.7475.5355.3355.1464.9684.7994.6394.487

The management of a company is considering three investment projects-W, X, and Y. Project W would require an investment of $19,000, Project X of $66,000, and Project Y of $87,000. The present value of the cash inflows would be $22,470 for Project W, $73,920 for Project X, and $99,900 for Project Y. Rank the projects according to the profitability index, from most profitable to least profitable.

A company has purchased a small auto for delivering orders. The auto was purchased for $29,000 and will have a 6-year useful life and a $4,100 salvage value. Delivering orders should increase gross revenues by at least $16,900 per year. It will  cost the company about $10,000 a year to make the deliveries.  The company depreciates all assets using the straight-line method. The payback period for the auto is closest to: (Round your answer to 1 decimal place.)

Is the following statement true or false? EXPLAIN. The reason that wages are higher in large cities is because housing is more expensive in large cities. 

A company is considering buying a new donut maker. This machine will replace an old donut maker that still has a useful life of 6 years. The new machine will cost $3,890 a year to operate, as opposed to the old machine, which costs $4,150 per year to operate. Also, because of increased capacity, an additional 21,400 donuts a year can be produced. The company makes a contribution margin of $0.10 per donut. The old machine can be sold for $8,400 and the new machine costs $31,400. The incremental annual net cash inflows provided by the new machine would be:

Identify two policies that we have discussed in this class that promote urban sprawl, and EXPLAIN how the policies do this.

Identify two policies that we have discussed in this class that promote urban sprawl, and EXPLAIN how the policies do this.

A company is considering buying a new donut maker. This machine will replace an old donut maker that still has a useful life of 6 years. The new machine will cost $3,890 a year to operate, as opposed to the old machine, which costs $4,150 per year to operate. Also, because of increased capacity, an additional 21,400 donuts a year can be produced. The company makes a contribution margin of $0.10 per donut. The old machine can be sold for $8,400 and the new machine costs $31,400. The incremental annual net cash inflows provided by the new machine would be:

A corporation is considering the purchase of a machine that would cost $200,000 and would last for 5 years. At the end of 5 years, the machine would have a salvage value of $20,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $44,000. The company requires a minimum return of 8% on all investment projects.The net present value of the proposed project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount) Present Value of $1; 1 ( 1 + r ) nPeriod4%5%6%7%8%9%10%11%12%13%14%15%10.9620.9520.9430.9350.9260.9170.9090.9010.8930.8850.8770.8720.9250.9070.890.8730.8570.8420.8260.8120.7970.7830.7690.75630.8890.8640.840.8160.7940.7720.7510.7310.7120.6930.6750.65840.8550.8230.7920.7630.7350.7080.6830.6590.6360.6130.5920.57250.8220.7840.7470.7130.6810.650.6210.5930.5670.5430.5190.49760.790.7460.7050.6660.630.5960.5640.5350.5070.480.4560.43270.760.7110.6650.6230.5830.5470.5130.4820.4520.4250.40.37680.7310.6770.6270.5820.540.5020.4670.4340.4040.3760.3510.327Present Value of an Annuity of $1 in Arrears; 1 r Period4%5%6%7%8%9%10%11%12%13%14%15%10.9620.9520.9430.9350.9260.9170.9090.9010.8930.8850.8770.8721.8861.8591.8331.8081.7831.7591.7361.7131.691.6681.6471.62632.7752.7232.6732.6242.5772.5312.4872.4442.4022.3612.3222.28343.633.5463.4653.3873.3123.243.173.1023.0372.9742.9142.85554.4524.3294.2124.13.9933.893.7913.6963.6053.5173.4333.35265.2425.0764.9174.7674.6234.4864.3554.2314.1113.9983.8893.78476.0025.7865.5825.3895.2065.0334.8684.7124.5644.4234.2884.1686.7336.4636.215.9715.7475.5355.3355.1464.9684.7994.6394.487