Question : 91. Below a table for the present value of $1 at : 1251741

 

 

91. Below is a table for the present value of $1 at Compound interest. 

Year6%10%12%

1.943.909.893

2.890.826.797

3.840.751.712

4.792.683.636

5.747.621.567

Below is a table for the present value of an annuity of $1 at compound interest. 

Year6%10%12%

1.943.909.893

21.8331.7361.690

32.6732.4872.402

43.4653.1703.037

54.2123.7913.605

Using the tables above, what would be the internal rate of return of an investment that required an investment of $210,600, and would generate an annual cash inflow of $50,000 for the next 5 years? A. 6%B. 10%C. 12%D. cannot be determined from the data given.

 

92. Below is a table for the present value of $1 at Compound interest. 

Year6%10%12%

1.943.909.893

2.890.826.797

3.840.751.712

4.792.683.636

5.747.621.567

Below is a table for the present value of an annuity of $1 at compound interest. 

Year6%10%12%

1.943.909.893

21.8331.7361.690

32.6732.4872.402

43.4653.1703.037

54.2123.7913.605

Using the tables above, what would be the internal rate of return of an investment of $168,140 and would generate an annual cash inflow of $70,000 for the next 3 years? A. 6%B. 10%C. 12%D. cannot be determined from the data given.

 

93. The expected average rate of return for a proposed investment of $500,000 in a fixed asset, with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $240,000 for the 4 years, is: A. 18%B. 48%C. 24%D. 12%

 

94. Which of the following is not an advantage of the average rate of return method? A. It is easy to use.B. It takes into consideration the time value of money.C. It includes the amount of income earned over the entire life of the proposal.D. It emphasizes accounting income.

 

95. Which of the following is an advantage of the cash payback method? A. It is easy to use.B. It takes into consideration the time value of money.C. It includes the cash flow over the entire life of the proposal.D. It emphasizes accounting income.

 

96. An anticipated purchase of equipment for $500,000, with a useful life of 8 years and no residual value, is expected to yield the following annual net incomes and net cash flows: 

YearNet IncomeNet Cash Flow

1$60,000$120,000

250,000110,000

350,000110,000

440,000100,000

540,00060,000

640,00060,000

740,00060,000

840,00060,000

What is the cash payback period? A. 5 yearsB. 4 yearsC. 6 yearsD. 3 years

 

97. Using the following partial table of present value of $1 at compound interest, determine the present value of $30,000 to be received three years hence, with earnings at the rate of 12% a year: 

Year6%10%12%

1.943.909.893

2.890.826.797

3.840.751.712

4.792.683.636

A. $14,240B. $16,800C. $21,360D. $15,840

 

98. The rate of earnings is 10% and the cash to be received in two year is $10,000. Determine the present value amount, using the following partial table of present value of $1 at compound interest: 

Year6%10%12%

1.943.909.893

2.890.826.797

3.840.751.712

4.792.683.636

A. $8,900B. $9,090C. $7,970D. $8,260

 

99. Heather Company is considering the acquisition of a machine that costs $360,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual cash flow of $120,000, and annual operating income of $83,721. What is the estimated cash payback period for the machine? A. 3 yearsB. 4.3 yearsC. 2.5 yearsD. 5 years

 

100. The expected average rate of return for a proposed investment of $4,800,000 in a fixed asset, using straight line depreciation, with a useful life of 20 years, no residual value, and an expected total net income of $8,640,000 is: A. 25%B. 18%C. 40%D. 9.0%

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more