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University Of North Texas Operations And Supply Chain Management Assignment Help - Corporate Finance

Question - If I had a net investment of $40,000 with cash inflows amounting to $20,000 per year for
three years (years 1-3) what would be the discounted payback on the project if the cost of
capital is 10%? If I had a cutoff of two years in discounted payback, would I accept this
project? (Points : 3)
1.35 years; accept
1.95 years; reject
2.35 years; reject
exactly 3 years; reject

8. Time Turman, Inc., is considering a drill press costing $30,000 and is expected to have a
10 year life. The drill press will be depreciated on a straight-line basis over 10 years to a
zero estimated salvage value. This machine is expected to reduce the firm's cash operating
costs by $4,500 per year. If the firm is in the 40 percent marginal tax bracket, deter ...Read More

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