The management of Cooper Corporation is considering the purchase of a new machine costing $420,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0. 909, 0. 826, 0. 751, 0. 683, 0. 621, respectively. In addition to this information, use the following data in determining the acceptability in this situation: Year Income from Operations Net Cash Flow
1 $100,000 $180,000
2 40,000 120,000
3 20,000 100,000
4 10,000 90,000
5 10,000 90,000

The cash payback period for this investment is:

3.2 years

Explanation:

Cash payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Amount invested = -420,000

Amount recovered in year 1 =   -420,000 + 180,000 = -240,000

Amount recovered in year 2 =  -240,000 + 120,000 = -120,000

Amount recovered in year 3 = -120,000 + 100,000 = -20,000

Amount recovered in year 4= - 20,000 / 90,000 = 0.22

Cash payback = 3.2 years

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported