E) None of the above 24 The process by which management plans, evaluates, and controls long-term investiment involving fixed assets is called: a. absorption cost analysis b. variable cost analysis c. capital investment analysis d. cost-volume-profit analysis 25 The expected average rate of return for a proposed investment of $800,000 in a fixed asset, with a usef life of four years, straight-line depreciation, no residual value, and an expected total net income of $240,000 for the 4 years, is: a. b. c. d. 30% 15% 60% 7.5% 26 An anticipated purchase of equipment for $580,000, with a useful life of 8 years and no residual v expected to yield the following annual net incomes and net cash flows: Year Net Income $60,000 50,000 50,000 40,000 40,000 40,000 40,000 40,000 $110,000 100,000 100,000 90,000 90,000 90,000 90,000 90,000 What is the cash payback period? a. 5 years b. 4 years c. 6 years d. 3 years In performing a vertical analysis, the base for cost of goods sold is a. total selling expenses. b. net sales c. total expenses. S2018 ACCT205; Principles of Accounting II Common Final Exau May 1, 20187: Early