initial investment $110,000

useful life 10 years

salvadged value $10,000

anual net income generated $4,200

fca cost of capital 10%

[The following information applies to the questions clisplayed below.) Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows: $ $ Iniiul S TIL Useful life Suluge value Aunlual Inst I NT? EITETSt= FCA's cost of capital 110.000 10 years 101000 1.200 10% $ Assume straight line depreciation method is used