4. The net initial investment for a piece of construction equipment is $3,200,000. Annual cash inflows are expected to increase by $640,000 per year. The equipment has an 8-year useful life. What is the payback period? (A) 3.00 years (B) 4.00 years(C)5.00 years (D) 8.00 years

1. Guble Manufacturing produces a single product that sells for $70. Variable costs per unit equal $45. The company expects total fixed costs to be $52,000 for the next month at the projected sales level of 2,500 units. In an attempt to improve performance, management is considering an alternative action. Suppose that management believes that a 10% reduction in the selling price will result in a 10% increase in units sold. If this proposed reduction in selling price is implemented ________. (A) operating income will decrease by $10,500 (B) operating income will increase by $11,500 (C) operating income will decrease by $13,000 (D) operating income will increase by $22,000

4. The net initial investment for a piece of construction equipment is $3,200,000. Annual cash inflows are expected to increase by $640,000 per year. The equipment has an 8-year useful life. What is the payback period?
(A) 3.00 years
(B) 4.00 years
(C)5.00 years
(D) 8.00 years

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