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Acme Tools is considering the purchase of a new machine. Thetotal cost of the new machine is $48,000 and it has a 9-yearservice life with no salvage value at the end of nine years. Theannual cash inflow will be 16% of the cost of the machine. If theappropriate cost of capital is 6.0 percent, what is the discountedpayback period?A. less than 8.0 yearsB. more than 8.0 years but less than 8.3 yearsC. more than 8.3 years but less than 8.6 yearsD. more than 8.6 years but less than 8.9 yearsE. more than 8.9 yearsA firm is evaluating an investment proposal which has an initialinvestment of $23,500, a cash inflow in year 1 that is presentlyvalued at $9,000, a cash inflow in year 2 that is presently valuedat $7,500. a cash inflow in year 3 that is presently valued at$6,000 and a cash inflow in year 4 that is presently valued at$5,500. The appropriate cost of capital is 5.0 percent. The netpresent value of the investment is:A. less than $100B. more than $100 but less than $1,600C. more than $1,600 but less than $3,100D. more than $3,100 but less than $4,600E. more than $4,600