This topic contains a solution. Click here to go to the answer

Author Question: Gavin and Alex, baseball consultants, are in need of a microcomputer network for their staff. They ... (Read 342 times)

sdfghj

  • Hero Member
  • *****
  • Posts: 552
Gavin and Alex, baseball consultants, are in need of a microcomputer network for their staff. They have received three proposals, with related facts as follows: 

Proposal AProposal BProposal C
Initial investment in equipment$90,000$90,000$90,000
Annual cash increase in operations:
   Year 180,00045,00090,000
   Year 210,00045,0000
   Year 345,00045,0000
Salvage value000
Estimated life3 yrs3 yrs1 yr
The company uses straight-line depreciation for all capital assets. 

Required: 
a.  Compute the payback period, net present value, and accrual accounting rate of return with initial investment, for each proposal. Use a required rate of return of 14%. 

b.  Rank each proposal 1, 2, and 3 using each method separately. Which proposal is best? Why?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by sdfghj on Mar 6, 2021

Tonyam972

  • Sr. Member
  • ****
  • Posts: 342
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 64% of students answer this correctly




 

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

For a complete list of videos, visit our video library