Question
Bob is considering the purchase of a machine that will produce a profit for the company of $10,000 a year. The purchase price is $60,000.
Bob is considering the purchase of a machine that will produce a profit for the company of $10,000 a year. The purchase price is $60,000.
a. What is the payback period?
b. What is the annual return on investment?
c. If the Required rate of return was 10% and the machine had to be replaced every 5 years with no salvage value would it be a good investment or a poor one? Why?
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Financial Market Analysis And Behaviour The Adaptive Preference Hypothesis
Authors: Emil Dinga, Camelia Oprean Stan, Cristina Roxana Tinisescu, Vasile Brctian, Gabriela Mariana Ionescu
1st Edition
1032255161, 1000609731, 9781032255163, 9781000609738
