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Form R vlanagerial Accounting Chapters 21, 22, 23, and 24 A company is considering purchasing a machine for $200.000. Projected annual net cash flows for Years through 5 are $35.000, $40,000, 545,000, 550,000, and $60.000, respectively. The cash flows occur evenly through the year. The payback period is A. 5.0 years B. 4.5 years C. 4.0 years D. 3.5 years he payback periodo, $50,000, and $60.00. Projected annual Use the following information to answer Ouestions 42 and 43 A company is considering investing in a project costing $40,000 with no salvage value and an eight year estimated useful life. Annual after-tax nst income from this investment is expected to be 58.000. 42. The annual average investment used in computing the accounting rate of retum is A. $40,000 B. $20,000 C. $18,000 D. $10,000 ink 1200 43. The accounting rate of return is A. 80% B. 60% C. 40% D. 20% re Ver. 23 STUDENTS 44. When using the internal rate of return to evaluate a project, the minimum acceptable rate of return set by management is called the A present value rate B. payback rate C. hurdle rate D. accounting rate KEY MARIO INSTI 45. A project costing $400,000 has estimated total net present value cash flows of $500,000. Net present value is A $900,000 B. S100,000 C. S(100,000) D. S(900,000) wenn has estimated annual net cash flows of $10,000 over its four-year life. The company en Anwit of table at 6% for four

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