question #18 and 19

Acct 102 Practice Test #5 Corrected Ch 20 & 24 Download ?Info Close Page > of 12 ZOOM Dashboa 18. Brave Industries is considering buying a machine for $180,000 with an estimated life of ten years and no salvage value. The straight-line method of depreciation will be used. The machine is expected to generate net income of S12,000 each year. The cash payback on this investment is A) 15 years. B) 10 years. C) 6 years. D) 3 years. Cour 19. Roger Industries is considering two capital investment proposals. Estimates regarding each project are provided below: Initial investment Annual net income Net annual cash inflow Estimated useful life Salvage value S800,000 40,000 200,000 5 years S1,200,000 84,000 284,000 6 years The company requires a 10% rate of return on all new investments. Present Value of an Annuity of 1 Periods 9% 10% 11% 12% 3.890 3.7913.696 3.605 4.486 4.3554.231 4.111 The net present value for Project AAA is A) $1,236,820 B) S365,824 C) S200,000 D) S36,820