The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%.The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data indetermining the acceptability of this investment:Year12345Income fromOperations$18,75018,75018,75018,75018,750Net CashFlow$93,75093,75093,75093,75093,750The present value index for this investment isOa. 0.95Ob. 1.00Oc. 1.05Od. 1.25

Present Value Index (PVI) is the ratio of the net present value to the initial expenditure required…

Answered: The present value index for this…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The table below shows a comparison between three mutually exclusive alternatives. If the capital investment of A < B < C, and the MARR is 15%, arrange these alternatives based on decreasing Annual worth (From the Highest annual worth to the Lowest annual worth)? Comparison A C B-A C-A | C-B RR% 195 16.7 17.4 16.2 15.4 17.6 О а. ВСА O b. CAB О с. СВА O d. BAC company's required rate of return is 10% and, in using the present worth method, a project's net present value is zero, this indicates that the O a. project earns a rate of return of 10%. O b. project's rate of return exceeds 10%. C. project earns a rate of return of 0%. d. project's rate of return is less than the minimum rate required.
Consider the return of investment as given in the following table: Year 2016 2017 2018 2019 2020 Amount (RM) 5000 5175 5394.94 5705.15 6047.46
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If the annual interest on capital investment is $2000 and annual deposit into depletion reserve is $1000 then what is annual net income Select one: a. 5000 b. 6000 C. 4000 d. 3000
Please no written by hand solutions Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: Expense Date Amount Attorney fees for articles of incorporation February 10 $ 32,000 March 1 – March 30 wages March 30 4,500 March 1 – March 30 rent March 30 2,000 Stock issuance costs April 1 20,000 April 1 – May 30 wages May 30 12,000 a. What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation? Start up cost? and orginazaion expendentures? b. What amount of the start-up costs and organizational expenditures may the corporation immediately expense in year 1?
If the profit margin is 0.1142, asset turnover is 0.5619 and financial leverage is 1.2937, what is the return on asset? Multiple Choice 0.1142 0.7269 0.0830 0.0642
If the annual deposit into depletion reserve is $ 1000 and annual interest on capital investment is $ 125, then find annual net income- -- Select one: O a. $ 1125 b. $ 875 c. $ 1025 d. $ 975
None
Calculate the change in Working Capital given the following: 2021 2020 A/R 240 A/P 185 A/R 255 A/P 165 INV 210 Int/P 145 INV 225 Int/P 155 W/C 2021 W/C 2020 Change in Working Capital =
2. Compute for the present value 150 100 50 i= 10%
Subject:
answer if its true or false 1) Based on the following information calculate the value at time 1 of the investment made at time zero. This future value is between 103 and 105. time discount investment (years) rate 6% 100 1

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The present value index for this investment is Oa. 0.95 Ob. 1.00 Oc. 1.05 Od. 1.25