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I really need help on this hw assignment. I got the Payback Period and Internal Rate of Return. But I can't figure out the Accounting
I really need help on this hw assignment. I got the Payback Period and Internal Rate of Return.
But I can't figure out the Accounting rate of return or the Net Present Value. I tried the formula using NPV.
Data Section Cost of investment (initial outlay) Estimated life of investment Estimated salvage value Estimated annual net cash inflow Required rate of return $500,000 10 years $25,000 $110,000 20.00% Payback period Accounting (average) rate of return Net present value Internal rate of return 4.55 years 17.95% Scratch Pad Cash flow table needed for NPV & IRR calculations IRR Combined NPV Salvage Value Year Cash Flow 110000 110000 110000 110000 110000 110000 110000 110000 110000 0 0 0 0 500000 110000 110000 110000 110000 110000 110000 110000 110000 110000 1100,000 Average Annual Cash Flows 110,000Step by Step Solution
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