chap 11 demo problem

# chap 11 demo problem - Name: Date: Instructor: Course: rd...

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FileName: 29c3f5278851308a95fa09c17d705ab5ea195a74.xls, Tab: Chapter 11 Demo Problem, Page 1 of 2, 12/28/2011, 19:01:16 Name: Date: Instructor: Course: investment of \$120,000 and will have a useful life of 4 years. Annual net income is expected to be \$9,000 a year. Depreciation is computed by the straight-line method without salvage value. The company's cost of capital is 12% Instructions: Title ÷ ( Title + Title ) = Title Amount ÷ ( Amount + Amount ) = Formula Present Value at 12% Annual values per year Formula Discount factor for 4 years (Use PV formula) Formula Title Formula Title Amount Title Formula Title ÷ ( Title ÷ Amount ) = Title Amount ÷ ( Amount ÷ Amount ) = Formula Managerial Accounting, 3 rd Edition, by Weygandt, Kieso, and Kimmel Solving Managerial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse Chapter 11 Demonstration Problem, Sierra Company is considering a long-term capital investment project called ZIP.ZIP will require an ( Hint: Assume cash flows can be computed by adding back depreciation expense.) (a)

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## This note was uploaded on 12/28/2011 for the course ACCT 221 taught by Professor Leonarda.bacon during the Winter '07 term at CSU Bakersfield.

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chap 11 demo problem - Name: Date: Instructor: Course: rd...

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