Question
Bullock Prosthetics is planning to buy 3-D printing machinery costing $380,000 . This machinery's expected useful life is 5 years . They require a minimum
Bullock Prosthetics is planning to buy 3-D printing machinery costing $380,000. This machinery's expected useful life is 5 years. They require a minimum rate of return of 8%, and have calculated the following data pertaining to the purchase and operation of this machinery:
| Year | Estimated Annual Cash Inflows | Estimated Annual Cash Outflows | Depreciation |
| 1 | $ 90,000 | $15,000 | $60,000 |
| 2 | $150,000 | $45,000 | $60,000 |
| 3 | $230,000 | $95,000 | $60,000 |
| 4 | $270,000 | $110,000 | $60,000 |
| 5 | $300,000 | $125,000 | $60,000 |
- Determine Terra's payback period, accounting rate of return, and NPV for this investment?
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Horngrens Financial And Managerial Accounting The Managerial Chapters
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura
6th Edition
0134486854, 978-0134486857
