If the net initial investment is $985000, returned working capital is $7500, then an average investment over five years will be ___________?

Related Mcqs:

1. The sum of returned working capital and net initial investment is divided by 2 to calculate ____________?

   A. increase in operating income
   B. average investment over five years
   C. average capital invested
   D. average rate of return

2. If tax operating income is $885000 per year and the net initial investment is $35750000 then increase in average is __________?

   A. 0.475% per year
   B. 4.475% per year
   C. 3.475% per year
   D. 2.475% per year

3. If the payback period is 4 years and the uniform increases in cash flows per year is $2750000, then the net initial investment can be _____________?

   A. $10,511,000
   B. $12,105,000
   C. $1,100,000
   D. $11,000,000

4. The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as ____________?

   A. relevant purchase order costs
   B. relevant inventory carrying costs
   C. irrelevant inventory carrying costs
   D. relevant opportunity cost of capital

5. The net initial investment is divided by uniform increasing in future cash flows to calculate __________?

   A. discounting period
   B. investment period
   C. payback period
   D. earning period

6. If the net initial investment is $6850000 and the uniform increases yearly cash flows is $2050000, then payback period will be _____________?

   A. 3.34 years
   B. 4.34 years
   C. 5.34 years
   D. 6.34 years

7. The net initial investment is divided by uniform increasing in future cash flows to calculate __________?

   A. discounting period
   B. investment period
   C. payback period
   D. earning period

8. If an initial investment is $765000, the payback period is 4.5 years, then increase in future cash flow will be __________?

   A. $5,645,000
   B. $6,442,500
   C. $3,442,500
   D. $5,442,500

9. The method, which calculates the time to recoup initial investment of project in form of expected cash flows is known as __________?

   A. net value cash flow method
   B. payback method
   C. single cash flow method
   D. lean cash flow method

10. If the fixed overhead allocated for actual output unit is $7500 and budgeted fixed overhead is $21000, then the production volume variance will be __________?

    A. $16,500
    B. $15,500
    C. $14,500
    D. $13,500