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Amazon is considering adding a fleet of drones to its company. These drones cost $2,000 each. Each drone is expected to generate an annual
Amazon is considering adding a fleet of drones to its company. These drones cost $2,000 each. Each drone is expected to generate an annual revenue of $800 and has a useful life of 3 years. After 3 years of operation, it has negligible salvage value. What is the external rate of return for each drone? Assume Amazon's MARR is 12%. Should Amazon invest in these drones?
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To calculate the external rate of return ERR for each drone we need to determine the net cash flows ...
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
