Graded Exam #4 2. The following data concerns a proposed equipment purchase:

Cost..................... $144,000

Salvage value ........................$4,000
Estimatedusefullife................4years
Annualnetcashflows.....................$46,100
Depreciation method.............................Straight-line

2. Assuming that net cash flows are received evenly throughout the year, the accounting rate of return is: Select one: a. 62.3%. b. 32.0%. c. 15.0%. d. 7.7%. e. 5.0%.

3. Graded Exam #4 If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value. Select one: True False

4. Graded Exam #4 A company has fixed costs of $90,000. Its contribution margin ratio is 30% and the product sells for $75 per unit. What is the company's break-even point in dollar sales? Select one: a. $ 60,000. b. $128,571. c. $180,000. d. $210,000. e. $300,000.