4. Learner company is considering a project that would have an eight-year life and require a 2,400,000 investment in equipment.At the end of 8 years, the project would terminate and the equipment would have no salvage value.The project would provide net operating income each year as follows:<\/p>
Sales 3,000,000<\/p>
Variable expenses 1,800,000<\/p>
Contribution margin 1,200,000<\/p>
Fixed expenses:<\/p>
Advertising, salaries & other out of<\/p>
Pocket costs 700,000<\/p>
Depreciation 300,000 1,000,000<\/p>
Net Operating Income 200,000<\/p>
<\/p>
The company's discount rate is 12%.<\/p>
Compute for the following: <\/p>
a. Annual net cash inflow <\/p>
b. NPV <\/p>
c. Payback Period <\/p>
d. ARR <\/p>", "transcribed_text": "", "related_book": { "title": "Principles Of Finance", "isbn": "979-8439388899", "edition": "1st Edition", "authors": "Julie Dahlquist, Rainford Knight", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/6290aa2348f9a_11251.jpg", "uri": "\/textbooks\/principles-of-finance-1st-edition-9798439388899", "see_more_uri": "" }, "free_related_book": { "isbn": "3319802054", "uri": "\/textbooks\/atypical-elements-in-drug-design-topics-in-medicinal-chemistry-1st-edition-9783319802053", "name": "Atypical Elements In Drug Design Topics In Medicinal Chemistry", "edition": "1st Edition" }, "question_posted": "2024-06-29 02:06:26", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/five-separate-force-couple-systems-act-at-the-corners-of", "description": "Five separate force-couple systems act at the corners of a metal block, which has been machined into the shape shown. 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