Olinick Corporation is considering a project that would require an investment of $284,000 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 $ 239,000 Variable expenses 23,000 Contribution margin 216,000 Fixed expenses: Salaries 26,000 Rents 39,000 Depreciation 34,000 Total fixed expenses 99,000 Net operating income $ 117,000 The scrap value of the project's assets at the end of the project would be $16,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to: (Round your answer to 1 decimal place.)

The management of Lanzilotta Corporation is considering a project that would require an investment of $255,000 and would last for 6 years. The annual net operating income from the project would be $109,000, which includes depreciation of $32,000. The scrap value of the project's assets at the end of the project would be $16,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)

A company with $810,000 in operating assets is considering the purchase of a machine that costs $86,000 and which is expected to reduce operating costs by $18,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)

Moates Corporation has provided the following data concerning an investment project that it is considering: Initial investment $ 190,000 Annual cash flow $ 120,000 per year Expected life of the project 4 years Discount rate 9% The net present value of the project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

The management of Penfold Corporation is considering the purchase of a machine that would cost $270,000, would last for 5 years, and would have no salvage value. The machine would reduce labor and other costs by $60,000 per year. The company requires a minimum pretax return of 12% on all investment projects. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to (Ignore income taxes.): (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment - $ 48,000 Annual cost savings - $ 14,000 Estimated salvage value - $ 4,000 Life of the project - 5 years Discount rate - 10% The net present value of the proposed investment is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

The management of Leitheiser Corporation is considering a project that would require an initial investment of $42,000. No other cash outflows would be required. The present value of the cash inflows would be $54,830. The profitability index of the project is closest to (Ignore income taxes.):

The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $27,000, would be replaced by a new machine. The new machine would be purchased for $432,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $149,000 per year in cash operating costs. The simple rate of return on the investment is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)

Oriental Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment in depreciable equipment - $ 510,000 Annual net cash flows - $ 90,000 Life of the equipment - 10 years Salvage value - $ 0 Discount rate - 7% The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment would be: (Round your answer to 1 decimal place.)

Eddie Corporation is considering the following three investment projects (Ignore income taxes.): Particulars - Project C - Project D - Project E Investment required - $ 12,700 - $ 58,000 - $ 103,000 Present value of cash inflows - $ 15,580 - $ 85,940 - $ 121,810 The profitability index of investment project D is closest to: