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Question 8 The standard manufacturing overhead rate per unit is the predetermined overhead rate times the activity Index quantity standard. True False O LINK TO TEXT Question 12 Marigold Corp. is considering the purchase of a piece of equipment that costs $10000. Projected net annual cash flows over the project's life are: Year Net Annual Cash Flow $2000 2 6000 8000 7000 The cash payback period is 2.14 years 2.26 years. 2.25 years. 2.60 years. LINK TO TEXT T H ESSALERY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT Question 14 Using the profitability index method, the present value of cash inflows for Project Flower is $88,000 and the present value of cash inflows of Project Plant is $48,000. IT Project Flower and Project Plant require initial investments of $90,000 and $40,000, respectively, and have the same useful life, the project that should be accepted is project flower project plant. either project may be accepted. neither project should be accepted. LINK TO TEXT Question 15 A project with a zero net present value indicates that it is O acceptable. profitable. O going to have an acceptable cash payback period. O unacceptable. LINK TO TEXT Que LALLULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NE Question 16 Splish Brothers is contemplating a capital project costing $38807. The project will provide annual cost savings of $15000 for 3 years and have a salvage value of $2000. The company's required rate of return is 10%. The company uses straight-line depreciation. Present Value PV of an Annuity of 1 at 10% of 1 at 10% Year .909 2 .909 .826 .751 1.736 2.487 This project is acceptable because it has zero NPV. unacceptable because it earns a rate less than 10%. acceptable because it has a positive NPV. unacceptable because it has a negative NPV. LINK TO TEXT

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