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c) Cougar Management Services is considering an investment of $150,000. Data related to the investment are as below. Calculate the payback period. (Points 2.0): Initial

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c) Cougar Management Services is considering an investment of $150,000. Data related to the investment are as below. Calculate the payback period. (Points 2.0): Initial investment Depreciable assets (straight-line) Working capital $150,000 10,000 Operations (per year for 5 years): Cash receipts Cash expenditures $50,000 20,000 Disinvestment (Year 5): Salvage value of equipment Recovery of working capital $5,000 10,000 d) Tempe Milling is evaluating a proposal to invest in a new piece of equipment costing $90,000 with the following annual cash flows over the equipment's 6-year useful life: Cash revenues Cash expenses Depreciation expenses (straight-line) Net Income Cost of capital $90,000 (52,000) (15,000) 14 percent Name three methods Tempe Milling can use to evaluate return on investment. Which method would you use to determine the viability of the project (Points 2.0)

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