15-06Pr_5e_s

Survey of Accounting (Available Titles Cengagenow)

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Problem 15-6 Name: Section: Score: 0% Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) wil appear beside, below or above an incorrect answer. 1. Proposal A: -year -month cash pay-back period Year 1 2 3 months Proposal B: -year -month cash pay-back period Year 1 2 months Proposal C: -year -month cash pay-back period Year 1 2 months Proposal D: -year -month cash pay-back period Year 1 2 3 months 2. Proposal A: ÷ = ÷ Proposal B: ÷ = ÷ Proposal C: ÷ = ÷ Proposal D: ÷ = ÷ 3. Proposal Reject A B C D 4. Proposal B: Year Net Cash Flow 1 2 3 4 5 Total Amount to be invested Net present value Proposal C: Year Net Cash Flow 1 2 3 4 5 Total Amount to be invested Net present value 5. Present value index = Total present value of net cash flow Amount to be invested Present value index of Proposal B: = Present value index of Proposal C: = 6. First: Second: 7. First: Second: 8. Indicate whether the statement is true (T) or false (F). a. Although Proposal B has the larger net present value, Proposal C has

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This note was uploaded on 11/04/2011 for the course ACC 121 taught by Professor Thomas during the Winter '08 term at Baker MI.

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15-06Pr_5e_s - Problem 15-6 Name Section Score 0...

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