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will improve productivity and increase quality, resulting in an
increase in net annual cash flows of $101,000 for the next 6
years. Management requires a 10% rate of return on all new
investments.
Instructions
Calculate the internal rate of return on this new machine.
Should the investment be accepted?
E12-8
Pierre's Hair Salon is considering opening a new location in
French Lick, California. The cost of building a new salon is
$300,000. A new salon will normally generate annual revenues
of $70,000, with annual expenses (including depreciation) of
$41,500. At the end of 15 years the salon will have a salvage
value of $80,000.
Instructions
Calculate the annual rate of return on the project.
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ACC 560 Week 8 Quiz 6 (Chapter 11)
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ACC 560 Week 8 Quiz 6 (Chapter 11)
Question 1
If actual direct materials costs are greater than standard direct
materials costs, it means that