1. the management of Cooke Industries obtained the following information about the performance of a major investment project. Revenues $300,000 Average Operating Assets $400,000 Net Operating Income $40,000 Desired ROI 10% The projects residual income was a. $0. b. 10% c. $20,000. d. $40,000

2. The cellular phone division of Stanton Company had budgeted sales of $800,000 and actual sales of $950,000. Budgeted expenses were $600,000 while actual expenses were $650,000. Based on this information, the responsibility report for the manager of this profit center would show: a. Both a favorable revenue variance and a favorable cost variance. b. A favorable revenue variance. c. Budgeted sales of $950,000. d. A favorable cost variance

3. Which of the following is the approximate internal rate of return for an investment that costs $45,880 and provides a $4,000 annuity for 20 years? a. 6% b. 5% c. 8% d. 10%

4. An investment that costs $25,000 will produce annual cash flows of $5,000 for a period of 6 years. Given a desired rate of return of 12%, the investment will generate a (round your answer to the nearest whole dollar): a. Negative net present value of $4,443. b. Positive net present value of $20,557. c. Positive net present value of $5,000. d. Negative net present value of $25,000.