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Selow are two potential investment alternatives: 3 yrs. Case X Case Y Initial capital investment $120,000 $180,000 Estimated useful life 3 yrs. Estimated terminal salvage
Selow are two potential investment alternatives: 3 yrs. Case X Case Y Initial capital investment $120,000 $180,000 Estimated useful life 3 yrs. Estimated terminal salvage value -0- Estimated annual savings in cash operating costs $ 50,000 $ 80,000 Minimum desired rate of return 10 percent 12 percent Assume straight-line amortization in all computations, and ignore income taxes. -0- The payback period in case Xis
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