Question 7 7 tco 6 the accounting rate of return

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Question 7. 7. (TCO 6) The accounting rate of return method is based on _____.(Points : 5)income datathe time value of money datamarket valuescash flow data
Question 8. 8. (TCO 6) A company projects annual cash inflows of $85,000 each year for the next 5 years if it invests$300,000 in new equipment. The equipment has a 5-year life and an estimated salvage value of $75,000. What is theaccounting rate of return on this investment? (Points : 5)
11. (TCO 6) A company has a minimum required rate of return of 9%. It is considering investing in a project that costs$175,000 and is expected to generate cash inflows of $70,000 at the end of each year for 3 years. The approximatenet present value of this project is _____. (Points : 5)
$2,191Question 12. 12. (TCO 7) Which one of the following is not needed in preparing a production budget? (Points : 5)
Question 13. 13. (TCO 7) A company budgeted unit sales of 102,000 units for January, 2008 and 120,000 units forFebruary, 2008. The company has a policy of having an inventory of units on hand at the end of each month equal to30% of next month's budgeted unit sales. If there were 30,600 units of inventory on hand on December 31, 2007, howmany units should be produced in January, 2008 in order for the company to meet its goals? (Points : 5)107,400 units102,000 units96,600 units138,000 units
Question 14. 14. (TCO 8) Which of the following is not a cause of profit variance? (Points : 5)
Changes in sales mixChanges in sales volumeAll of the above are causes of profit variance.
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Term
Spring
Professor
Corrigan
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