Multiple Choice Question 140
Larkspur Company is considering buying equipment for $360000 with a useful life of 5 years and an estimated salvage value of $22000. If annual expected income is $28000, the denominator in computing the annual rate of return is
Multiple Choice Question 141
Splish Brothers Company had an investment which cost $400000 and had a salvage value at the end of its useful life of zero. If Mussina’s expected annual net income is $15000, the annual rate of return is:
Multiple Choice Question 125
If a project costing $70000 has a profitability index of 1 and the discount rate was 12%, then the present value of the net cash flows was
greater than $70000.
less than $70000.