Geory, general manager at a water park, installed a new waterslide with an estimated use-ful life of
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Geory, general manager at a water park, installed a new waterslide with an estimated use-ful life of 10 years. The waterslide will generate cash inflows of \(\$ 10,000\) each year over the next 10 years. The waterslide has no salvage value at the end of 10 years, and the company's discount rate is \(12 \%\). Geory calculates the NPV of the investment to be \(\$ 20,000\). What is the cost of the waterslide? Assuming the waterslide costs \(\$ 50,000\), what is the payback period?
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Managerial Accounting Information For Decisions
ISBN: 9780324222432
4th Edition
Authors: Thomas L. Albright , Robert W. Ingram, John S. Hill
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