Boyle Company Is Evaluating Two Possible Investments in Depreciable Plant

question 117

Multiple Choice

Boyle Company is evaluating two possible investments in depreciable plant assets.The company uses the straight-line method of depreciation.The following information is available: $$\begin{array} { | l | r | r | } \hline & \text { Investment A } & \text { Investment B } \\\hline \text { Initial capital investment } & \$ 100,000 & \$ 150,000 \\\hline \text { Estinated useful life } & 3 \text { years } & \text { 3 years } \\\hline \text { Estimated residual value } & \$ 10,000 & \$ 15,000 \\\hline \begin{array} { l } \text { Estimated annual get cash inflow } \\\text { Far 3 years }\end{array} & \$ 25,000 & \$ 40,000 \\\hline \text { Required rate of return } & 10 \% & 12 \% \\\hline\end{array}$$ The present value factors of $1 due 3 years from now:
$\begin{array} { | c | c | } \hline 8 \% & 0.794 \\\hline 10 \% & 0.751 \\\hline 12 \% & 0.712 \\\hline 14 \% & 0.675 \\\hline 16 \% & 0.641 \\\hline\end{array}$
The annuity present value factors of $1 due at the end of each of 3 years:
$\begin{array} { | c | c | } \hline 8 \% & 2.577 \\\hline 10 \% & 2.487 \\\hline 12 \% & 2.402 \\\hline 14 \% & 2.322 \\\hline 16 \% & 2.246 \\\hline\end{array}$
- How long is the payback period for Investment B?

• A)2.40 years
• B)3.38 years
• C)3.75 years
• D)10.00 years

Grasp how to properly instruct patients on sample collection methods for urinalysis.

Comprehend the relationship between postmenopause and increased risk of UTIs.

Familiarize with common symptoms of urinary system disorders and appropriate diagnostic testing.

Understand methods to aid patients with urinary incontinence.

---

Definitions:

Experimenter Bias

A situation where the researcher's expectations or preferences inadvertently influence the participants of an experiment or the interpretation of its results.

Placebo-control Group

In a clinical trial, this is a group of subjects who receive an inactive substance or treatment as a means to control for the placebo effect in the experimental outcomes.

Side Effects

Unintended or secondary effects that can occur as a result of taking medication or undergoing a specific treatment.

Research Design

The overall strategy or plan for a study, outlining how to collect and analyze information, thereby ensuring the validity and reliability of the results.