ACCT 301 Week 7 Problems
Question # 00023157
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Updated on: 08/15/2014 11:39 PM Due on: 08/16/2014

Problem 1
"Required: Compute the average annual cash inflows. (20 points)
Compute the payback period using the accumulation method. (20 points)"
(40 points total)
2013 2014 2015 2016 2017
Incremental revenue 6,000 2,000 4,000 2,000 1,000
Cost of new machine 12,000
Problem 2
"Required: Compute the ROI for each division below to two decimal places. (30 points)
Which division has the best performance? (10 points)"
(40 points total)
Division A Division B Division C
Operating income 245,000 125,000 350,000
Operating assets 1,200,000 775,000 1,500,000

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Solution: ACCT 301 Week 7 Problems Solution