Question
Oriental Company has gathered the following data on a proposed investment project. The company uses straight-line depreciation on all equipment. Investment in depreciable equipment: $200,000
Oriental Company has gathered the following data on a proposed investment project. The company uses straight-line depreciation on all equipment.
Investment in depreciable equipment: $200,000
Annual cash flows: $50,000
life of the equipment: 10 years
Salvage value: $0
Discount rate: 10%
Required:
What is the payback period for the investment?
What is the simple rate of return on the investment?
What is the net present value of this investment?
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a Payback period for the investment Initial investment Annual net cash flows 200000 50000 4 years Th...
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Managerial Accounting
Authors: Ray Garrison, Theresa Libby, Alan Webb
9th canadian edition
1259269477, 978-1259269479, 978-1259024900
