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MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
I need a help in Financial accounting questions.(4)
20.
value:
3.50 points
| The following information is given about a proposed investment project: |
| Â Â Discount rate | 10% |
| Â Â Life of the project | 10 years |
| Â Â Initial investment | $430,000 |
| Â Â Annual cash inflows | 83,000 |
| Â Â Salvage value | 0 |
| The net present value of the proposed investment project is closest to: |
| ?$80,035. |
| $510,035. |
| $80,035. |
| $83,000. |
21.
value:
3.50 points
A company is considering the purchase of a machine for $10,000 that would reduce operating costs by $4,000 per year for 10 years. The machine will have no scrap value (residual value) at the end of its 10-year useful life. The company's required rate of return is 12%.
What is the net present value of the investment in the machine? (Select the answer that is closest to your calculations.)
|
$ 12,600 |
|
$ 30,000 |
|
$ 22,600 |
|
$ 32,598 |
22.
value:
3.50 points
A company is considering the purchase of a machine for $30,000 that would reduce operating costs by $6,000 per year for 10 years. The machine will have no scrap value (residual value) at the end of its 10-year useful life. The company's required rate of return is 9%.
What is the net present value of the investment in the machine? (Select the answer that is closest to your calculations.)
|
$18,500 |
|
$30,000 |
|
$8,508 |
|
$38,503 |
23.
value:
3.50 points
In managerial accounting, the capital budgeting method that recognizes the time value of money by discounting cash flows over the life of the project, using the company's required rate of return as the discount rate, is called the:
| simple rate of return method. |
| financing method. |
| payback method. |
| net present value method. |
24.
value:
3.50 points
A company's ______________________ is usually regarded as its minimum required rate of return.
|
project ranking index |
|
payback rate |
|
working capital |
|
cost of capital |
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