Accounting

A Corporation is adding a new product line that will require an investment of $120,000. The line is estimated to generate cash inflows of $25,000 the first year, $23,000 the second year, & $18,000 each year thereafter for ten more years. What’s the payback period?
A.  4.80 years  B.  6.00 years
C.  6.32 years  D.  6.67 years

7.   If you invest $1,000 at the end of every year for five years at an interest rate of 10%, the balance of your investment in 5 years will be closest to:
A. $1,611. B. $3,791. C. $5,000.       D. $6,105.

Don't use plagiarized sources. Get Your Custom Essay on
Accounting
Just from $13/Page
Order Essay

8.  You win the lottery & must decide how to take the payout.  Use an 8% discount rate. What is the present value of $10,000 a year received at the end of each of the next six years?
A.  $ 6,300  B.  $46,230
C.  $49,928  D.  $60,000

10.  Which of the following is another name for the rate of return?
A.  Discount rate  B.  Required rate of return
C.  Hurdle rate  D.  All of the above

Use the following information for the next two questions:
(Present value tables are needed.)  Miami Marine Enterprises is evaluating the purchase of an hydraulic lift system for all of its locations to use for the boats brought in for repair.  The company has narrowed their choices down to two—the B14 Model & the F54 Model.  Financial data about the two choices follows.
B14 Model F54 Model
Investment  $     320,000   $  240,000
Useful life (years) 8 8
Estimated annual net cash inflows for useful life  $      75,000   $   40,000
Residual value  $      30,000   $   10,000
Depreciation method Straight-line Straight-line
Required rate of return 14% 10%
11.  What is the net present value of the B14 Model?
A. $17,395 positive B. $21,930 negative
C. $38,455 positive D. $358,455 positive

12.  What is the net present value of the F54 Model?
A. $21,930 negative B. $38,455 positive
C. $178,070 positive D. $218,070 positive

Place Order
Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Try it now!

Grab A 14% Discount on This Paper

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.