nor 5 nus 6 5 Sure-Lock Ltd. is purchasing new equipment at a cost of $325,000. Depreciation on the equipment will be straight-line to zero for 6 years. The equipment will yield net income of $100,000 in the first year of its operation. After that, net income will decrease at a rate of 10% per year. What is the accounting rate of return, given that the tax rate is 35? Multiple Choice 0 9.57% O 28.34% 31.24% O O 35 28% 48.06% Calculate AAR given the following information average revenues = $50.000; average cost of goods sold = $28,000, average administrative expenses = $5,000; average interest expense = $1,500; average tax expense = 54.650, and the average book value of the investment = $80,000. 6 Multiple Choice 15.56% 0 15.06% O 14.56% O 14.06% 13.56% Determine the IRR of a project with an initial cost of $200,000, with annual cash flows of $30,000 over its fifteen year life. Multiple Choice 8.40% 9.40% 10.40% O 11.40% 12.40% A project will produce cash inflows of $3,650 each year for four years. The start-up costs are $15,000. In year five, the project is expected to produce a cash inflow of $7.500. What is the net present value of this project if the required rate of return is 11.5 %? Multiple Choice $487.82 O $50109 $533 23 $556.07 $608.18 O 5 Sure-Lock Ltd. is purchasing new equipment at a cost of $325,000. Depreciation on the equipment will be straight-line to zero for 6 years. The equipment will yield net income of $100,000 in the first year of its operation. After that, net income will decrease at a rate of 10% per year. What is the accounting rate of return, given that the tax rate is 35%? Multiple Choice 9.57% 28.34% 31.24% 35.28% 48,06% 6 Calculate AAR given the following information: average revenues = $50,000; average cost of goods sold 000; average administrative expenses = $5,000; average interest expense = $1.500; average tax expense = $4,650; and the average book value of the investment = $80.000 Multiple Choice 15.56% 15,06% 14.56% O 14.06% a 13.56% nor 5 nus 6 5 Sure-Lock Ltd. is purchasing new equipment at a cost of $325,000. Depreciation on the equipment will be straight-line to zero for 6 years. The equipment will yield net income of $100,000 in the first year of its operation. After that, net income will decrease at a rate of 10% per year. What is the accounting rate of return, given that the tax rate is 35? Multiple Choice 0 9.57% O 28.34% 31.24% O O 35 28% 48.06% Calculate AAR given the following information average revenues = $50.000; average cost of goods sold = $28,000, average administrative expenses = $5,000; average interest expense = $1,500; average tax expense = 54.650, and the average book value of the investment = $80,000. 6 Multiple Choice 15.56% 0 15.06% O 14.56% O 14.06% 13.56% Determine the IRR of a project with an initial cost of $200,000, with annual cash flows of $30,000 over its fifteen year life. Multiple Choice 8.40% 9.40% 10.40% O 11.40% 12.40% A project will produce cash inflows of $3,650 each year for four years. The start-up costs are $15,000. In year five, the project is expected to produce a cash inflow of $7.500. What is the net present value of this project if the required rate of return is 11.5 %? Multiple Choice $487.82 O $50109 $533 23 $556.07 $608.18 O 5 Sure-Lock Ltd. is purchasing new equipment at a cost of $325,000. Depreciation on the equipment will be straight-line to zero for 6 years. The equipment will yield net income of $100,000 in the first year of its operation. After that, net income will decrease at a rate of 10% per year. What is the accounting rate of return, given that the tax rate is 35%? Multiple Choice 9.57% 28.34% 31.24% 35.28% 48,06% 6 Calculate AAR given the following information: average revenues = $50,000; average cost of goods sold 000; average administrative expenses = $5,000; average interest expense = $1.500; average tax expense = $4,650; and the average book value of the investment = $80.000 Multiple Choice 15.56% 15,06% 14.56% O 14.06% a 13.56%
