Author Question: Bock Construction Company is considering four proposals for the construction of new loading ... (Read 31 times)

FButt · **on:** Mar 6, 2021

Question 1

Unlike the net present value method and the internal rate-of-return method, the payback method does NOT distinguish between the origins of the cash flows.
◦ true
◦ false

Question 2

Bock Construction Company is considering four proposals for the construction of new loading facilities that will include the latest in ship loading/unloading equipment. After careful analysis, the company's accountant has developed the following information about the four proposals:

	Proposal 1	Proposal 2	Proposal 3	Proposal 4
Payback period	4 years	4.5 years	6 years	7 years
Net present value	$80,000	$178,000	$166,000	$308,000
Internal rate of return	12%	14%	11%	13%
Accrual accounting rate of return	8%	6%	4%	7%

Required:
How can this information be used in the decision-making process for the new loading facilities? Does it cause any confusion?

jaykayy05 · **Reply #1 on:** Mar 6, 2021

A FREE account is required to view all solutions!

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 32% of students answer this correctly