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Lindas Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 limos) $ 1,680,000
Lindas Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: |
Initial investment (2 limos) | $ | 1,680,000 | |
Useful life | 10 | years | |
Salvage value | $ | 140,000 | |
Annual net income generated | 164,640 | ||
LLTs cost of capital | 15 | % | |
Assume straight line depreciation method is used. |
payback period?
cash inflow (for next 10 years)?
table factor = 5.21612
present value of cash inflow ?
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