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Default principles of management accounting - please help

1. Gregory knows the following facts about his latest proposal to get rich quickly:
target rate of return 12 %
Life 5 years
Initial investment$100,000
Net present value at 12 %$ 52,131

What is the proposal's annual net cash flow? (Use the present value tables.)
a.$10,426 (rounded)
b.$14,461 (rounded)
c.$42,200
d.$56,700
e.None of these

Answer is C. Dont know how to do it



2. Bacon Company has a very successful line of products. She can spend $100,000 now on additional inventory. The added inventory will increase earnings after taxes by $40,000 per year for 10 years. She expects to get the $100,000 in inventory investment back at the end of the 10 years. She must earn a 16 percent ROI. What is the net present value of this decision?

a.$116,020positive
b.$193,320positive
c.$ 36,440negative
d.$ 0(must be the internal rate of return)
e.None of these
*Answer is A

3. Ignore taxes. A $300,000 new investment will expand Koehler Co.'s annual sales by $200,000, will last 5 years, and have no salvage value. The contribution margin percentage is 60 percent. Incremental fixed costs will be $20,000. Koehler's desired rate of return is 14%. What is the net present value of this project?

a.$(94,020) (rounded)
b.$ 43,300 (rounded)
c.$111,960 (rounded)
d.$317,940 (rounded)
*Answer is B



If anyone knows how to get to the answers that would be greatly appreciated
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