Answered step by step
Verified Expert Solution
Question
1 Approved Answer
AN enterprise tries to decide on a project which requires to invest $260,000 in one equipment first. But it will bring cash inflow $55,650 per
AN enterprise tries to decide on a project which requires to invest $260,000 in one equipment first. But it will bring cash inflow $55,650 per year in 8 years. The left-over value of the equipment after 8 years is $21,200. The interest rate is 15%. What would be the total value of the return compared to the original investment.
A.
7,974.58
B.
275,026.16
C.
466,400
D.
267,051.57
E.
445,200
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started