Question 21

Not yet answered

Marked out of 2.00

Flag question

Question text

A company is considering purchasing a machine that costs $400,000 and is estimated to have no salvage value at the end of its 8-year useful life. If the machine is purchased, annual revenues are expected to be $100,000 and annual operating expenses exclusive of depreciation expenses are expected to be $38,000. The straight-line method of depreciation would be used. The cash payback period on the machine is:

Select one:

a. 6

b. 30 years

c. 3.2 years

d. 33.3 years

e. 6.45 years

f. 4.5 years

Question 22

Not yet answered

Marked out of 2.00

Flag question

Question text

Aero, Inc. requires sales of $2,000,000 to cover its fixed costs of $600,000 and to earn net income of $500,000. What percent are variable costs of sales?

Select one:

a. 53%

b. 25%

c. 45%

d. 30%

e. 55%