The following present value factors are provided for use in this problem. periods present value present value of an of $1 at 8% annuity of $1 at 8% 1 0.9259 0.9259 2 0.8573 1.7833 3 0.7938 2.5771 4 0.7350 3.3121 xavier co. wants to purchase a machine for $37,000 with a four year life and a $1,000 salvage value. xavier requires an 8% return on investment. the expected year-end net cash flows are $12,000 in each of the four years. what is the machine's net present value (round to the nearest whole dollar)? a. $3,480.b. $2,745.c. $40,480d. none of the above

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%