BUSINESS
.  What is the project profitability index for this project? (Round discount factor(s) to 3 decimal places and final answer to 2 decimal places.) 
References
eBook & Resources
WorksheetLearning Objective: 1301 Determine the payback period for an investment.Learning Objective: 1305 Rank investment projects in order of preference.
Foundational 135Learning Objective: 1302 Evaluate the acceptability of an investment project using the net present value method.Learning Objective: 1306 Compute the simple rate of return for an investment.
Difficulty: 2 MediumLearning Objective: 1303 Evaluate the acceptability of an investment project using the internal rate of return method.
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5.
value:
0.21 points
Required information
Foundational 136
6.  What is the project’s internal rate of return?(Round your answer to nearest whole percent.) 
References
eBook & Resources
WorksheetLearning Objective: 1301 Determine the payback period for an investment.Learning Objective: 1305 Rank investment projects in order of preference.
Foundational 136Learning Objective: 1302 Evaluate the acceptability of an investment project using the net present value method.Learning Objective: 1306 Compute the simple rate of return for an investment.
Difficulty: 2 MediumLearning Objective: 1303 Evaluate the acceptability of an investment project using the internal rate of return method.
Check my work
6.
value:
0.21 points
Required information
Foundational 137
7.  What is the project’s payback period? (Round your answer to 2 decimal places.) 
References
eBook & Resources
WorksheetLearning Objective: 1301 Determine the payback period for an investment.Learning Objective: 1305 Rank investment projects in order of preference.
Foundational 137Learning Objective: 1302 Evaluate the acceptability of an investment project using the net present value method.Learning Objective: 1306 Compute the simple rate of return for an investment.
Difficulty: 2 MediumLearning Objective: 1303 Evaluate the acceptability of an investment project using the internal rate of return method.
Check my work
7.
value:
0.21 points
Required information
Foundational 138
8.  What is the project’s simple rate of return for each of the five years?(Round your answer to 2 decimal places. i.e. 0.12342 should be considered as 12.34%.) 
References
eBook & Resources
WorksheetLearning Objective: 1301 Determine the payback period for an investment.Learning Objective: 1305 Rank investment projects in order of preference.
Foundational 138Learning Objective: 1302 Evaluate the acceptability of an investment project using the net present value method.Learning Objective: 1306 Compute the simple rate of return for an investment.
Difficulty: 2 MediumLearning Objective: 1303 Evaluate the acceptability of an investment project using the internal rate of return method.
Check my work
8.
value:
0.21 points
Required information
Foundational 139
9.  If the company’s discount rate was 14% instead of 12%, would you expect the project’s net present value to be higher, lower, or the same?  

References
eBook & Resources
WorksheetLearning Objective: 1301 Determine the payback period for an investment.Learning Objective: 1305 Rank investment projects in order of preference.
Foundational 139Learning Objective: 1302 Evaluate the acceptability of an investment project using the net present value method.Learning Objective: 1306 Compute the simple rate of return for an investment.
Difficulty: 2 MediumLearning Objective: 1303 Evaluate the acceptability of an investment project using the internal rate of return method.
Check my work
9.
value:
0.21 points
Required information
Foundational 1310
10.  If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project’s payback period to be higher, lower, or the same?  

References
eBook & Resources
WorksheetLearning Objective: 1301 Determine the payback period for an investment.Learning Objective: 1305 Rank investment projects in order of preference.
Foundational 1310Learning Objective: 1302 Evaluate the acceptability of an investment project using the net present value method.Learning Objective: 1306 Compute the simple rate of return for an investment.
Difficulty: 2 MediumLearning Objective: 1303 Evaluate the acceptability of an investment project using the internal rate of return method.
Check my work
10.
value:
0.21 points
Required information
Foundational 1311
11.  If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project’s net present value to be higher, lower, or the same?  

References
eBook & Resources
WorksheetLearning Objective: 1301 Determine the payback period for an investment.Learning Objective: 1305 Rank investment projects in order of preference.
Foundational 1311Learning Objective: 1302 Evaluate the acceptability of an investment project using the net present value method.Learning Objective: 1306 Compute the simple rate of return for an investment.
Difficulty: 2 MediumLearning Objective: 1303 Evaluate the acceptability of an investment project using the internal rate of return method.
Check my work
11.
value:
0.21 points
Required information
Foundational 1312
12.  If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project’s simple rate of return to be higher, lower, or the same?  

References
eBook & Resources
WorksheetLearning Objective: 1301 Determine the payback period for an investment.Learning Objective: 1305 Rank investment projects in order of preference.
Foundational 1312Learning Objective: 1302 Evaluate the acceptability of an investment project using the net present value method.Learning Objective: 1306 Compute the simple rate of return for an investment.
Difficulty: 2 MediumLearning Objective: 1303 Evaluate the acceptability of an investment project using the internal rate of return method.
Check my work
12.
value:
0.21 points
Required information
Foundational 1313
13.  Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 50%. What was the project’s actual net present value? (Negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, intermediate calculations and final answer to the nearest whole dollar amount.) 
rev: 04_23_2015_QC_CS13345
References
eBook & Resources
WorksheetLearning Objective: 1301 Determine the payback period for an investment.Learning Objective: 1305 Rank investment projects in order of preference.
Foundational 1313Learning Objective: 1302 Evaluate the acceptability of an investment project using the net present value method.Learning Objective: 1306 Compute the simple rate of return for an investment.
Difficulty: 2 MediumLearning Objective: 1303 Evaluate the acceptability of an investment project using the internal rate of return method.
Check my work
13.
value:
0.21 points
Required information
Foundational 1314
14.  Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 50%. What was the project’s actual payback period? (Round your answer to 2 decimal places.) 