1. If an asset costs $210,000 and is expected to have a $30,000 salvage value at the end of its ten-year life, and generates annual net cash inflows of $30,000 each year, the cash payback period is

A) 8 years. .

B) 7 years.

C) 6 years.

D) 5 years.

2. Lao Jao So Professor Mullen's Company is considering buying a machine for $180,000 with an estimated life of ten years and no salvage value. The straight-line method of depreciation will be net accounting income of$12,000 each year. The cash payback period on this investment is

A) 15 years.

B) 10 years.

C) 6 years.

D) 3 years.

3. The Most Honorable Professor Mullen's Company is considering buying a machine for $120,000 with an estimated life of ten years and no salvage value. The straight-line method of depreciation will be used. The machine is expected to generate net accounting income of $3,000 each year. The cash payback on this investment is

A) 20 years.

B) 10 years.

C) 8 years.

D) 4 years.

4. Xiao Miao Company projects an increase in accounting net income of $225,000 each year for the next five years if it invests $900,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $300,000. What is the annual average accounting (AAA) rate of return on this investment?

A) 25.0%

B) 37.5%

C) 50.0%

D) 57.5%

5. Da Miao Company had an investment which cost $260,000 and had a salvage value at the end of it useful life of zero. If Da Maio's expected annual accounting net income is $15,000, the Annual Average Accounting (AAA) rate of return is:

A) 5.8%.

B) 9.8%.

C) 11.5%.

D) 15%.