Question
Multiple Choice Question 99 A project with a profitability index of 1.156 also has net cash flows with a present value of $57800. The projects
Multiple Choice Question 99
A project with a profitability index of 1.156 also has net cash flows with a present value of $57800. The projects internal rate of return was 10%. The initial investment was
$50000.
$55000.
$52020.
$66817.
Multiple Choice Question 53
Larkspur Company is considering buying a machine for $460000 with an estimated life of 10 years and no salvage value. The straight-line method of depreciation will be used. The machine is expected to generate net income of $4000 each year. The cash payback period on this investment is
57.50 years.
10.00 years.
9.20 years.
11.50 years.
Multiple Choice Question 57
Swifty Co. purchased some equipment 3 years ago. The company's required rate of return is 12%, and the net present value of the project was $(800). Annual cost savings were: $6000 for year 1; 4000 for year 2; and $2000 for year 3. The amount of the initial investment was
Present Value PV of an Annuity Year of 1 at 12% of 1 at 12% 1 0.893 0.893 2 0.797 1.690 3 0.712 2.402
$10770.
$8808.
$10408.
$9170.
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