Cripple Creek Inc

question 162

Multiple Choice

Cripple Creek Inc. Use the information presented below for Cripple Creek,Inc.for 2013 and 2012 to answer the questions that follow.Cripple Creek uses the straight-line depreciation method.
Refer to the information for Cripple Creek,Inc.
Using the 2013 data,what is the average life of Cripple Creek's property,plant,and equipment (rounded to one decimal place) ?

• A)1.6 years
• B)2.5 years
• C)4.0 years
• D)10.0 years

---

Definitions:

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows or the rate charged by central banks for loans to commercial banks.

Cash Flows

The total figure of money being moved into and extracted from a business, critically affecting its liquid assets.

Rate Of Return

The gain or loss of an investment over a specified period, expressed as a percentage.

Cash Flow Growth Rate

A measure of how fast a company's cash flow increases over a certain period, indicating financial health.