Project A requires a $295,000 initial investment for new machinery with a five-year life and a salvage value of $33,500. The company uses straight-line depreciation. Project A is expected to yield annual net income of $24,700 per year for the next five years. Compute Project As accounting rate of return.

Answer is not complete

Accounting Rate of Return
Choose Numerator:	/	Choose Denominator:	=	Accounting Rate of Return
Annual after-tax net income	/	Annual average investment	=	Accounting rate of return
$24,700	/			0

Peng Company is considering an investment expected to generate an average net income after taxes of $2,800 for three years. The investment costs $46,200 and has an estimated $6,000 salvage value. Assume Peng requires a 5% return on its investments. Compute the net present value of this investment. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) (Negative amounts should be indicated by a minus sign.)

Answer is not complete

Cash Flow	Select Chart	Amount	x	PV Factor	=	Present Value
Annual cash flow	Present Value of an Annuity of 1			2.7232	=	$0
Residual value	Present Value of 1	$6,000	x	0.8638	=	$5,183
	Present value of cash inflows
	Immediate cash outflows
	Net present value

If Quail Company invests $52,000 today, it can expect to receive $10,800 at the end of each year for the next four years, plus an extra $6,900 at the end of the fourth year. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.)

What is the net present value of this investment assuming a required 10% return on investments?

Answer is not complete

	Chart Values are Based on:
	n =	4
	i =	10%
Cash Flow	Select Chart	Amount	x	PV Factor	=	Present Value
Annual cash flow	Present Value of an Annuity of 1			3.1699	=	$0
Residual value	Present Value of 1			0.6830	=	0
	Present value of cash inflows
	Immediate cash outflows
	Net present value