Question
Chee Company has gathered the following data on a proposed investment project: Investment required in equipment............. $240,000 Annual cash inflows.................................. $50,000 Salvage value ............................................ $0
Chee Company has gathered the following data on a proposed investment project: Investment required in equipment............. $240,000
Annual cash inflows.................................. $50,000
Salvage value ............................................ $0
Life of the investment ............................... 8 years
Required rate of return .............................. 10%
Assets will be depreciated using straight line depreciation method
Required: Using the net present value and the internal rate of return methods, is this a good investment?
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Fundamental Accounting Principles Volume II
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
1259261433, 978-1260305838
