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Unformatted text preview: 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 value of $_________....
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This note was uploaded on 12/13/2009 for the course ACCY 121 taught by Professor Fagan,k during the Fall '08 term at CSU Sacramento.
- Fall '08