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-
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%
A. The payback period for the investment is closest to which of the following?
B. The simple rate of return on the investment is closest to which of the following?
C. The net present value on this investment is closest to which of the following?
D. The internal rate of return on the investment is closest to which of the following?
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