Capital investment analysis Group Project In one group, find a local business, such as a copy shop,
Question:
Capital investment analysis Group Project In one group, find a local business, such as a copy shop, that rents time on desktop computers for an hourly rate. Determine the hourly rate. In the other group, determine the price of a mid-range desktop computer at www.dell.com. Combine this information from the two groups and perform a capital budgeting analysis. Assume that one student will use the computer for 40 hours per semester for the next three years. Also assume that the minimum rate of return is 10%. Use the interest tables in Appendix A in performing your analysis. [Hint: Use the appropriate present value of an annuity of $1 factor for 5%
compounded for six semiannual periods (periods = 6).]
Does your analysis support the student purchasing the computer?
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 9781305267831,9781305267848
13th Edition
Authors: Carl S. Warren , James M. Reeve , Jonathan Duchac