home / study / business / accounting / accounting questions and answers / 1a)) a company wants to have $20,000 at the end of a ten-year period by investing a single ... Question: 1A)) A company wants to have $20,000 at the end of a ten-year period by investing a single sum no... 1A)) A company wants to have $20,000 at the end of a ten-year period by investing a single sum now. How much needs to be invested in order to have the desired sum in ten years, if the money can be invested at 12%? (Ignore income taxes.) Multiple Choice $7,720 A $3,539.82 B $3,254.68 C $6,440 D 1B)) The management of L Corporation is considering a project that would require an investment of $285,000 and would last for 6 years. The annual net operating income from the project would be $115,000, which includes depreciation of $16,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): Multiple Choice 2.2 years A 2.3 years B 1.9 years C 2.5 years D 1C)) J Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment $ 39,000 Annual cash inflows $ 9,600 Salvage value of equipment $ 0 Life of the investment 15 years Required rate of return 10 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return for the investment (rounded to the nearest tenth of a percent) is: Multiple Choice 26.1% A 17.9% B 12.6% C 31.2% D