Acc 350 topic 6 quiz - Study guides, Class notes & Summaries

1. Gamma Company is considering an investment proposal that would require an initial outlay of $800,000, and would yield yearly cash flows of $200,000 for 9 years. The company uses a discount rate of 10%. What is the NPV of the investment? 2. True or False: Net present value and internal rate of return consider the time value of money, so they are appropriate for longer term capital investments 3. True or False: An annuity refers to a series of equal cash flows received or paid annually. ...

Exam (elaborations) ACC 350 - Managerial Accounting (ACC 350 - Managerial Accounting)

ACC-350 Topic 6 Quiz - questions and answers

. Gamma Company is considering an investment proposal that would require an initial outlay of $800,000, and would yield yearly cash flows of $200,000 for 9 years. The company uses a discount rate of 10%. What is the NPV of the investment? 2. True or False: Net present value and internal rate of return consider the time value of money, so they are appropriate for longer term capital investments 3. True or False: An annuity refers to a series of equal cash flows received or paid annually. ...