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An investment of $100,000 promises an after-tax cash flow of $36,000 per year for 6 years with no residual value. Find the investment's accounting rate
An investment of $100,000 promises an after-tax cash flow of $36,000 per year for 6 years with no residual value.
- Find the investment's accounting rate of return.
- Find the investment's payback period.
- Find the investment's net present value at a 15 percent discount rate
- Find the investment's internal rate of return
- Assuming the required rate of return on the investment is 15 percent, would you recommend this investment? Explain your answer using the results from your answers to questions a-d as appropriate.
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