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Note: Use appropriate factor(s) from the tables provided. $ millions Initial investment Annual net cash flows, years 1-10 Required rate of return on investment
Note: Use appropriate factor(s) from the tables provided. $ millions Initial investment Annual net cash flows, years 1-10 Required rate of return on investment Required 1 Required 2 Google $ (23,548) $ 4,000 Required: 1. Compute break-even time for both companies. 2. Based on break-even time, which company can expect its investment to more quickly yield positive net cash flows Complete this question by entering your answers in the tabs below. Compute break-even time for both companies. Note: Round "Break even time" answers to 1 decimal place. Google Apple Rreak-even time years 6% Apple $ (10,495) $3,000 years 7% Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on break-even time, which company can expect its investment to more quickly yield positive net cash flows? Which company can expect its investment to more quickly yield positive net cash flows? < Required 1 Requli 2 Apple Google Beyer Company is considering buying an asset for $200,000. It is expected to produce the following net cash flows. Year 4 $150,000 Year Initial investment Year 1 Year 2 Year 31 Year 4 Year 5 Total Year 1 $50,000 Net cash flows Compute the payback period for this investment. Note: Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places. Net Cash Flows $ (200,000) Year 2 $32,000 Payback period= Year 3 $61,000 Cumulative Cash Flows Year 5 $29,000 4
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