Logy Ltd Is Evaluating Two Possible Investments in Depreciable Plant

question 44

Multiple Choice

Logy Ltd is evaluating two possible investments in depreciable plant assets.The company uses the straight-line method of depreciation.The following information is available:
$\begin{array}{|l|c|c|}\hline & \text { Investment A } & \text { Investment B } \\\hline \text { Initial capital investment } & \$ 104,000 & \$ 156,000 \\\hline \text { Estimated useful life } & 10 \text { years } & 10 \text { years } \\\hline \text { Estimated residual value } & 0& \$ 30,000 \\\hline \text { Eistimated anunual net cash inflow for } 10 \text { years } & \$ 23,000 & \$ 46,000 \\\hline\text { Required rate of return }&12\%&12\%\\\hline\end{array}$

Calculate the payback period for Investment B.

• A) 3.57 years
• B) 4.43 years
• C) 1.96 years
• D) 3.69 years

Understand the chemical classifications of hormones and their modes of action.

Identify the physiological and pathological effects of hormone imbalances.

Explain the concept of hormone specificity and receptor interaction.

Understand the functioning of hormones in metabolism and stress response.

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Definitions:

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all materials bought during the period.

Dust Density Sensors

Devices used to detect and measure the amount of dust particles in the air for environmental monitoring or industrial processes.

Equivalent Unit

A measurement used in process costing that converts partially completed units into an equivalent number of fully completed units to accurately measure the output of a production process.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale during the period.