Accounting

a. Part A: Capital Budgeting Decisions Chee Company has gathered the following data on a proposed investment project: Investment required in equipment............. $240,000 Annual cash inflows.................................. $50,000 Salvage value ............................................ $0 Life of the investment ............................... 8 years Required rate of return .............................. 10%  Assets will be depreciated using straight-line depreciation method  Required: Using the net present value and the internal rate of return methods, is this a good investment?

e.Boscia Corporation's balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents......................... $ 44 $ 38 Accounts receivable .................................. 82 69 Inventory ................................................... 71 69 Plant and equipment .................................. 537 500 Accumulated depreciation......................... ( 240) ( 201) Total assets................................................ $494 $475 Liabilities and stockholders’ equity: Accounts payable ...................................... $ 70 $ 60 Wages payable........................................... 24 21 Taxes payable ............................................ 19 22 Bonds payable ........................................... 226 300 Deferred taxes............................................ 19 18 Common stock........................................... 22 20 Retained earnings...................................... 114 34 Total liabilities and stockholders’ equity .. $494 $475 The net income for the year was $108. Cash dividends were $28. Required: Prepare a statement of cash flows in good form using the indirect method.