Question
Please assist with the attached. I need help determining the following: Can you please show how you arrived at the answer so I can compare?
Please assist with the attached. I need help determining the following: Can you please show how you arrived at the answer so I can compare?
All revenue and expenses other than depreciation will be received and paid in cash. Compute the following for this proposal:
(a) Annual net cash flow: $__________
(b) Payback period: __________ years
(c) Return on average investment: __________%
(d) Net present value, discounted at an annual rate of 6% (present value of $1 due in 10 years, discounted at 6%, is 0.558; present value of $1 received annually for 10 years, discounted at 6%, is 7.360): $__________
5. Capital budgeting Flynn Corporation is debating whether to purchase a new computerized production system. The system will cost $450,000, and have an estimated 10-year life with a salvage value of $70,000. The estimated operating results from the new production system are as follows: All revenue and expenses other than depreciation will be received and paid in cash. Compute the following for this proposal: (a) Annual net cash flow: $__________ (b) Payback period: __________ years (c) Return on average investment: __________% (d) Net present value, discounted at an annual rate of 6% (present value of $1 due in 10 years, discounted at 6%, is 0.558; present value of $1 received annually for 10 years, discounted at 6%, is 7.360): $__________Step by Step Solution
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