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Ill rate ASAP Average Rate of Returm Method. Net Present Value Method, and Analysis The capital investment committee of Cross Continent Trucking Inc. is considering
Ill rate ASAP
Average Rate of Returm Method. Net Present Value Method, and Analysis The capital investment committee of Cross Continent Trucking Inc. is considering two capital investments. The estimated income from operations and net cash flows from each investment are as follows: Warehouse Tracking Technology Net Cash Net Cash Year Operations Flow Operations S37,500 $121,000 $79,000 $194,000 21,000 60,000 21,000 115,000 37,500 21.000 3,000 79,000 21.000 5,500 54,000 $187,500 $605,000 $187,500 Each project requires an investment of $500,000. Straight-line depreciation wil be used, and no residual value is expected. The committee has selected a rate of 10% for purposes of the net present value analysis. Present value of si at Comp d Interest 0.943 0.833 0.797 0.756 0.751 0.712 0.572 0.747 0.621. 0.497 0.402 0,132 0.335 0.513 0.452 0.279 0.627 0.327 0.233 0.424 0.247Step by Step Solution
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