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Calculate the Return on Investment for a company that has net income from a product of $55.000, net cash flows of $35,000 and the average

Calculate the Return on Investment for a company that has net income from a product of $55.000, net cash flows of $35,000 and the average invested assets on that product was $645,000.

a 8.5%

b 5.4%

c 9.3%

d 3.1%

The future value of $1,000 invested in an investment yielding 8% in 12 years will be $2.518. True /False

Jack wants to know how much he will need to invest today to have $50,000 in his account after 8 years. To compute this, he should use the present value of an annuity table. True/ False

An annuity is a series of unequal earnings. True/ False

A lump sum is one amount or a series of unequal amounts. True/ False

Both the accounting rate of return and the payback period ignores the time value of money. True/ False

An example of a profit center would be a department where the manager is responsible for the cost, revenue and significant capital expenditures. True /False As a general rule, a lower payback period is better than a higher one. True/ False

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