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Please complete (Show work) Year Cash Flow Net Income 0 $(100,000) $----------- 1 $10,000 $12,000 2 $22,000 $26,000 3 $33,000 $33,000 4 $40,000 $32,000 5
Please complete (Show work)
Year | Cash Flow | Net Income |
0 | $(100,000) | $----------- |
1 | $10,000 | $12,000 |
2 | $22,000 | $26,000 |
3 | $33,000 | $33,000 |
4 | $40,000 | $32,000 |
5 | $2,000 | $37,000 |
Required Rate of Return: 9.00%
Average book value: $63,000
Payback criteria (years): 3.0
Discount Payback Criteria (years): 2.5
Average Accounting return: 25.0%
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