Question
Betty is hoping that an investment of $30,300 will provide additional revenue to the store of $18,200 per year for 3 years. Her partner
Betty is hoping that an investment of $30,300 will provide additional revenue to the store of $18,200 per year for 3 years. Her partner in crime, Mark, is confident that a larger investment of $40,200 will be required to bring in a steady flow of $22,800 in new revenue per year for 3 years. Determine the discounted payback period for each investment (using before-tax cash flows). The company's required rate of return is 8%. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places e.g. 15.25.) Click here to view the factor table Discounted payback period Betty years Whose investment appears to better use the company's resources? Mark years
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
11th edition
134141083, 978-0134141084
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