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Coffee Beanie is considering a new location for a coffee shop. The store requires an investment of $400,000 and has a useful life of
Coffee Beanie is considering a new location for a coffee shop. The store requires an investment of $400,000 and has a useful life of five years with no estimated salvage value. The minimum acceptable return is 8%. The estimated net income from the new store is as follows: Net Income 10,000 20,000 30,000 20,000 10,000 90,000 Yaar 1 2 Total Calculate the Net Present Value (show calculations above) Calculate the Payback Period Should the company make the investment? Why?
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Financial and Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
12th edition
978-1133952428, 1285078578, 1133952429, 978-1285078571
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