Question
1. ABC Clinic wants to buy equipment for $300,000 with projected cash flows of $50,000 per year during the equipment's useful cycle of 7 years.
1. ABC Clinic wants to buy equipment for $300,000 with projected cash flows of $50,000 per year during the equipment's useful cycle of 7 years. What is the payback period? What is the Internal Rate of Return? Regardingpayback,the netcash flows of$50,000includesnetnewrevenueandnetnew expense.
- 2. What is the present value of $60,000 discounted at 8% annually for 7 years?
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International Financial Management
Authors: Geert Bekaert, Robert Hodrick
3rd edition
1107111820, 110711182X, 978-1107111820
