Question 5 Not yet answered Marked out of 1.00 Flag question When evaluating projects using the NPV technique NPV-Co+ ty financing costs are Select one: O a. considered in the operating cash flows. o b. not considered. O c. considered in the discount rate. O d. considered in the terminal value. o e, considered as part of the investment outlay. Question 6 Not yet answered Marked out of 1.00 Flag question A firm is looking to purchase a new machine which will cost $496,000 today and in 5 years' time the machine could be sold for $107,000. The allowable depreciation rate is 9% on a straight line basis. The company tax rate is 30%. What is the terminal value of the machine. (Please round your answer to the nearest dollar but exclude $ and, when typing your answer.) Answer Question 7 Not yet answered Marked out of 1.00 Flag question John's Bakery would like to expand its business by delivering artisan breads for the local restaurant trade. The investment outlay is $113331 and John has calculated that he will earn a profit after taxes over each of the next five of $6736, $16441, $18401, $19880, and $22471 respectively. What is the average AROI for the proposed expansion project? (Please type your answer in decimals e.g. 10.1% should be shown as 0.101.) Answer: Question 8 Not yet answered Marked out of 1.00 Flag question The annual accounting return on investment is deficient as a technique of investment evaluation for all of the following reasons, except: Select one: O a. it ignores profits in excess of the optimal AROI. o b. it fails to consider the time value of money. O c. it uses accounting data, not cash flows. o d. the criterion of a minimum required average AROI is arbitrary. o e. it is not consistent with owner wealth maximisation. Previous page Next page