### Online College Courses for Credit

• > ACCT346 Week 7 Weekly Homework Assignment Answers
+

# ACCT346 Week 7 Weekly Homework Assignment Answers

##### Rating:
(0)
Author: l marshall
##### Description:

Directions: Your assignment this week is to answer the four questions below. Please note that Question #1 has 2 parts, Part A and Part B. Please show your work for full credit and use the box provided. Please add more rows or columns to the box if needed.
1.      Gomez Corporation is considering two alternative investment proposals with the following data:
2.  You have been awarded a scholarship that will pay you \$500 per semester at the end of each of the next 8 semesters that you earn a GPA of 3.5 or better. You are a very serious student and you anticipate receiving the scholarship every semester. Using a discount rate of 3% per semester, which of the following is the correct calculation for determining the present value of the scholarship? PLEASE STATE WHY YOU CHOSE THE ANSWER THAT YOU DID.
3.  Maersk Metal Stamping is analyzing a special investment project. The project will require the purchase of two machines for \$30,000 and \$8,000 (both machines are required). The total residual value at the end of the project is \$1,500. The project will generate cash inflows of \$11,000 per year over its 8-year life. If Maersk requires a 6% return, what is the net present value (NPV) of this project? (Use present value tables or Excel.)
4.  Hincapie Manufacturing evaluating investing in a new metal stamping machine costing \$30,924. Hincapie estimates that it will realize \$12,000 in annual cash inflows for each year of the machine's 3-year useful life. Approximately, what is the the internal rate of return (IRR) for the machine? (Use present value tables or Excel.)

(more)

### Developing Effective Teams

*No strings attached. This college course is 100% free and is worth 1 semester credit.

37 Sophia partners guarantee credit transfer.

299 Institutions have accepted or given pre-approval for credit transfer.

* The American Council on Education's College Credit Recommendation Service (ACE Credit®) has evaluated and recommended college credit for 32 of Sophia’s online courses. Many different colleges and universities consider ACE CREDIT recommendations in determining the applicability to their course and degree programs.

Tutorial
Rating