ACCT 2302- Ch. 24 Homework PDF

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ACCT 2101, Summer 2021...

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Chapter 24 Homework EX 24-1 •

Payback period: 3.08 years

EX 24-2 •

Net present value of this investment: $87,300.

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Due to the positive net present value, the corporation should accept the proposal.

EX 24-5 a) Payback period: 2.21 years b) Payback period: 3.62 years EX 24-7 •

Accounting rate of return: 13%

PR 24-1A 1) Depreciation each year: $115,000 2) Net income: $53,900; Net cash flow: $168,900 3) Payback period: 2.84 years 4) Accounting rate of return: 21.56% 5) Net present value: $107,358 PR 24-2A 1) Annual expected net cash flows: a. Project Y: $143,500 b. Project Z: $153,066 2) Payback period:

a. Project Y: 2.44 years b. Project Z: 2.28 years 3) Accounting rate of return: a. Project Y: $175,000 b. Project Z: $175,000 4) Net present value: a. Project Y: $125,287 b. Project Z: $44,466 PR 24-4A 1) Net present value of alternative 1: $60,226 2) Net present value of alternative 2: $-808 3) Alternative 1 is the best alternative because it has a positive outcome....