1. Michael Kimathi has purchased a tractor for $96,250. He expects to receive a net cash...
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1. Michael Kimathi has purchased a tractor for $96,250. He expects to receive a net cash flow of $29,250 per year from the investment. What is the payback period for Michael? Round your answer to two decimal places. 2. Bertha Lafferty invested $370,000 in a laundromat. The facility has a 10-year life expectancy with no expected salvage value. The laundromat will produce a net cash flow of $108,000 per year. What is the accounting rate of return? Enter your answer as a whole percentage value (for example, 16% should be entered as "16" in the answer box). 3. Melannie Bayless has purchased a business building for $321,000. She expects to receive the following cash flows over a 10-year period: Year 1: $46,000 Year 2: $58,500 Year 3-10: $83,000 What is the payback period for Melannie? Round your answer to one decimal place. What is the accounting rate of return? 1. Michael Kimathi has purchased a tractor for $96,250. He expects to receive a net cash flow of $29,250 per year from the investment. What is the payback period for Michael? Round your answer to two decimal places. 2. Bertha Lafferty invested $370,000 in a laundromat. The facility has a 10-year life expectancy with no expected salvage value. The laundromat will produce a net cash flow of $108,000 per year. What is the accounting rate of return? Enter your answer as a whole percentage value (for example, 16% should be entered as "16" in the answer box). 3. Melannie Bayless has purchased a business building for $321,000. She expects to receive the following cash flows over a 10-year period: Year 1: $46,000 Year 2: $58,500 Year 3-10: $83,000 What is the payback period for Melannie? Round your answer to one decimal place. What is the accounting rate of return?
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1 To calculate the payback period for Michael Kimathis tractor investment we need to divide the init... View the full answer
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
Posted Date:
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