ACCY 121 Chap 21 - ACCY 121 A Sample of Possible Quiz...

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ACCY 121 – A Sample of Possible Quiz Questions from Horngren Chapter 21 (Ignore income taxes in this problem.) ABC Corporation is considering the purchase of a machine that would cost  $__________ and would last for _____ years. At the end of _____ years, the machine would have a salvage value of  $__________. By reducing labor and other operating costs, the machine would provide annual cost savings of  $_______. The company requires a minimum pretax return of ____% on all investment projects.  The net present value  of the proposed project is closest to: (Ignore income taxes in this problem.) ABC Corporation uses a discount rate of _____% in its capital budgeting. Partial  analysis of an investment in automated equipment with a useful life of ____ years has thus far yielded a net present  value of $_________. This analysis did not include any estimates of the intangible benefits of automating this process  nor did it include any estimate of the salvage value of the equipment. Ignoring any salvage value, to the nearest whole 
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