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Wright Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $1,000,000 and a 5-year life. There is no salvage value for the equipment. The increase in cash flow each year of the equipment's life would be as follows: Year 1 $ 377, 000 Year 2 $ 352, 000 Year 3 $ 287 , 000 Year 4 $ 232, 000 Year 5 $ 187, 000 What is the payback period? Multiple Choice 2.37 years O 2.94 years O 2.98 years MacBook AirDevon Corp. is trying to decide whether to lease or purchase a piece of equipment. The total cost lease the equipment will be $157,500 over its estimated life, while the total cost to buy the equipment will be $123,000 over its estimated life. At Devon's required rate of return, the net present value of the cost of leasing the equipment is $111,000 and the net present value of the cost of buying the equipment is $126,500. Based on financial factors, Devon should: Multiple Choice O lease the equipment, saving $34,500 over buying. O buy the equipment, saving $34,500 over leasing. lease the equipment, saving $15,500 over buying. buy the equipment, saving $15,500 over leasing. MacBook AirSaved Help Save & Exit Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $165,785. The equipment will have an initial cost of $534,000 and have a 5 year life. If the salvage value of the equipment is estimated to be $179,000, what is the accounting rate of return? Ignore income taxes. Multiple Choice O 15.25% O 32.72%. 17.75%. O 31.05%.

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