10.

The amount of the average investment for a proposed investment of $187,000 in a fixed asset with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $28,100 for the four years is

a.$7,025

b.$28,100

c.$93,500

d.$46,750

11.

Hayden Company is considering the acquisition of a machine that costs $388,000. The machine is expected to have a useful life of six years, a negligible residual value, an annual net cash flow of $85,000, and annual operating income of $72,250. What is the estimated cash payback period for the machine (round to one decimal points)?

a.6.5 years

b.5.4 years

c.1.2 years

d.4.6 years

12.

Heidi Company is considering the acquisition of a machine that costs $924,300. The machine is expected to have a useful life of six years, a negligible residual value, an annual net cash flow of $117,000, and annual operating income of $78,000. What is the estimated cash payback period for the machine (round to one decimal point)?

a.7.9 years

b.4.7 years

c.11.8 years

d.1.5 years

18.

The amount of the estimated average income for a proposed investment of $87,000 in a fixed asset, giving effect to depreciation (straight-line method), with a useful life of four years, no residual value, and an expected total income yield of $29,500, is

a.$29,500

b.$7,375

c.$14,000

d.$21,750