# ACCT 346 Week 7 Homework Assignment NEW

Model:Recent

**Price : $10.00 | $5.00**

**This Tutorial contains following Attachments:**

- ACCT 346 Week 7 Homework Assignment.docx

**ACCT 346 Week 7 Homework Assignment****.Gomez Corporation is considering two alternative investment proposals with the following data:**

**a. How long is the payback period for Proposal X?**

**b. What is the accounting rate of return for Proposal Y?**

**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 is evaluating an investment 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 internal rate of return (IRR) for the investment? (Use present value tables or Excel.)**