21.( TCO 10) Shirt Company wants to purchase a new cutting machine for its sewing plant. The investment is expected to generate annual cash inflows of $ 500,000. The required rate of return is 12 % and the current machine is expected to last for four years. What is the maximum dollar amount Shirt Company would be willing to spend for the machine, assuming its life is also four ………..( Points: 5) 21.( TCO 10) The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $ 950,000. The investment is expected to generate $ 350,000 in annual cash flows for a period of four years. The required rate of return is 14 %. The old machine can be sold for $ 50,000. The machine is expected to have zero value at the end of the four-year period. What is the net present value of the investment? Would the company want to purchase the new machine? Income taxes are not considered.( Points: 5) 21. # TCO 10 # The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $ 950,000. The investment is expected to generate $ 400,000 in annual cash flows for a period of four years. The required rate of return is 12 %. The old machine can be sold for $ 50,000. The machine is expected to have zero value at the end of the four-year period. 22.( TCO 11) The four cost categories in a cost of quality program are( Points: 5) 22.( TCO 11) An advantage of financial cost of quality measures is that they( Points: 5) 23.( TCO 11) Regal Products has a budget of $ 900,000 in 20X6 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $ 60,000 in variable costs. The new method will require $ 18,000 in training costs and $ 120,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 150,000 units. Appraisal costs for the year are budgeted at $ 600,000. The new 24.( TCO 12) The costs associated with storage are an example of which …..?( Points: 5) 25.( TCO 12) Liberty Celebrations, Inc., manufactures a line of flags. The annual demand for its flag display is estimated to be 100,000 units. The annual cost of carrying one unit in inventory is $ 1.60, and