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(Ignore income taxes in this problem.) Overland Corporation has gathered the following data on a proposed investment project: Investment required in equipment Annual cash inflows
(Ignore income taxes in this problem.) Overland Corporation has gathered the following data on a proposed investment project: Investment required in equipment Annual cash inflows Salvage value of equipment Life of the investment Required rate of return $ 150,000 $ 40,000 $ 0 10 years 10 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return on the investment is: 16.67% 10.00% 26.67% 36.67%
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