Questions from General Accounting

Q: A net present value analysis used to evaluate a pro- posed

A net present value analysis used to evaluate a pro- posed equipment acquisition indicated a $7,900 net present value. What is the meaning of the $7,900 as it relates to the desirability of the propos...

Q: The internal rate of return method is used by King Bros.

The internal rate of return method is used by King Bros. Construction Co. in analyzing a capital expenditure proposal that involves an investment of $156,218 and annual net...

Q: Two projects have an identical net present value of $9,

Two projects have an identical net present value of $9,000. Are both projects equal in desirability? Explain.

Q: What are the major disadvantages of the use of the net present

What are the major disadvantages of the use of the net present value method of analyzing capital investment proposals?

Q: What are the principal objections to the use of the average rate

What are the principal objections to the use of the average rate of return method in evaluating capital investment proposals?

Q: Discuss the principal limitations of the cash payback method for evaluating capital

Discuss the principal limitations of the cash payback method for evaluating capital investment proposals.

Q: Your boss has suggested that a one-year payback period is

Your boss has suggested that a one-year payback period is the same as a 100% average rate of return. Do you agree? Explain.

Q: The following data relate to the direct materials cost for the production

The following data relate to the direct materials cost for the production of 10,000 automobile tires: Actual: ……………………………………. 145,000 lb. at $2.80 Standard: ………………………………...150,000 lb. at $2.75 a. Det...

Q: Why would the cash payback method understate the attractiveness of a project

Why would the cash payback method understate the attractiveness of a project with a large residual value?

Q: Which account is used in the job order cost system to accumulate

Which account is used in the job order cost system to accumulate direct materials, direct labor, and factory overhead applied to production costs for individual jobs?