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Investment Decision Criteria: Problems Initial Investment 3,100,000 Projects Life 4 SL Depreciation Salvage Value 600,000 Asset Retirement (Salvage Value) 780,000 Change in working capital 13%
Investment Decision Criteria: Problems
Initial Investment | 3,100,000 | |||
Projects Life | 4 | |||
SL Depreciation Salvage Value | 600,000 | |||
Asset Retirement (Salvage Value) | 780,000 | |||
Change in working capital | 13% | of Sales | ||
Opportunity Cost | 600,000 | |||
Expected Annual Sales | 6,000,000 | 5,000,000 | 6,800,000 | 3,900,000 |
Gross profit Margin | 45% | |||
Operating Expense | 15% | of sales | ||
Tax Rate | 35% | |||
Required Rate of Return | 8% |
Investment Decision Criteria: Problems
Compute for:
NPV
PI
IRR
MIRR
Payback
Discounted payback
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