Question
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
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started