Jonny Gupta is a Project Manager for TOTAL Consultants. She has been asked to help choose one of the four potential project candidates. The
management used Payback Period Technique, ROI and NPV over 5 years at 5.5% for
project selection.
A. Renovating an apartment. The project involves making an investment of $200,000.
Monthly rental returns of $4,800.
B. Building a bridge. The project involves making an investment of $4,000,000.
Quarterly returns via toll for the bridge of $150,000.
c. Upgrading software platform. The project involves making an investment of
$485,000. There will be Quarterly returns of $33,000.
D. Building a new high school. The project involves making an investment of $900,000
while offering Free School tuition for the first two years. After 24 months, there will
be monthly returns via school fees of $50,000.
AL CALCULATIONS: (3 POINTS)

A. economic resources to be used or turned into cash within one year. b. reports assets, liabilities, and stockholders' equity. c. decrease assets; increase liabilities and stockholders' equity. d. increase assets; decrease liabilities and stockholders' equity. e. an exchange or event that has a direct and measurable financial effect. f. accounts for a business separate from its owners. g. the principle that assets should be recorded at their original cost to the company. h. a standardized format used to accumulate data about each item reported on financial statements. i. the basic accounting equation. j. the two equalities in accounting that aid in providing accuracy. k. the account credited when money is borrowed from a bank using a promissory note. l. cumulative earnings of a company that have not yet been distributed to the owners. m. every transaction has at least two effects. n. amounts presently owed by the business. transaction, separate entity assumption, balance sheet, liabilities, assets, current assets, notes payable, duality of effects, retained earnings, debit.