Question
9. Calculate the rate of return for the following investment. The total cost of the investment is $250,000, the depreciable life of the investment is
9. Calculate the rate of return for the following investment. The total cost of the investment is $250,000, the depreciable life of the investment is 10 years, and the annual profit (net of depreciation) is $30,000. What considerations other than financial ones exist?
10. Assume the annual depreciation charge for the investment in Problem 9 is $25,000. Determine the payback period of the investment.
11. Determine the break-even point, in dollars, for investment with fixed costs of $100,000 and an estimated contribution of 60 percent. How much revenue would it need to produce before you would invest?
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