Question
Shields Company has gathered the following data on a proposed investment project: Investment Required in Equipment $400,000 Annual Cash Inflows $80,000 Salvage Value $-0- Life
Shields Company has gathered the following data on a proposed investment project:
| Investment Required in Equipment | $400,000 |
| Annual Cash Inflows | $80,000 |
| Salvage Value | $-0- |
| Life of the Investment | 10 years |
| Discount Rate | 10% |
(Ignore income taxes in this problem.)
. The simple rate of return on the investment is closest to which of the following? A. 5%. B. 10%. C. 15%. D. 20%.
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Financial Reporting The Theoretical And Regulatory Framework
Authors: D A V I D Alexander
2nd Edition
0412357909, 978-0412357909
