Question
A project has estimated annual net cash flows of $54,000 and is estimated to cost $334,800. What is the payback period? (Round your answer to
A project has estimated annual net cash flows of $54,000 and is estimated to cost $334,800. What is the payback period? (Round your answer to 2 decimal places.)
Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $104,816 per year. Other information about this proposed project follows:
| Initial investment | $ | 511,300 | |
| Useful life | 10 | years | |
| Salvage value | $ | 43,000 | |
Assume straight line depreciation method is used.
Required:
1. Calculate the accounting rate of return for Bartlett. (Round your percentage answer to 2 decimal places.)
2. Calculate the payback period for Bartlett. (Round your answer to 2 decimal places.)
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Construction Auditing Planning Implementation Use
Authors: Peter Wotschke, Gregor Kindermann
1st Edition
3658388404, 978-3658388409
