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need help Redwood Corporation is considering two alternative investment proposals with the following data: Proposal X Proposal Y Investment $800,000 $483,000 Useful life 9 years
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Redwood Corporation is considering two alternative investment proposals with the following data: Proposal X Proposal Y Investment $800,000 $483,000 Useful life 9 years 9 years Estimated annual net cash inflows for 9 years $135,000 $63,000 Residual value $32,000 $- Depreciation method Straight-line Straight-line Required rate of return 11% 6% How long is the payback period for Proposal Y? O A. 25.00 years B. 7.67 years C. 5.93 years OD. 15.09 years Redwood Corporation is considering two alternative investment proposals with the following data: Proposal X Proposal Y Investment $860,000 $510,000 Useful life 8 years 8 years Estimated annual net cash inflows for 8 years $130,000 $68,000 Residual value $42,000 Depreciation method Straight-line Straight-line Required rate of return 13% 13% $- What is the accounting rate of return for Proposal X? Inst O A. 15.12% TI Fc B. 1.57% C. 2.62% OD. 3.23% Step by Step Solution
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