Question
The following information relates to three independent investment decisions by Buckle Enterprises, each with a 10-year life and no salvage value: Using the present value
The following information relates to three independent investment decisions by Buckle Enterprises, each with a 10-year life and no salvage value: |
Using the present value tables in Exhibits 26-3 and 26-4, compute the missing information pertaining to each investment proposal. (Round "PV factors" to 3 decimal places and your final answers to the nearest dollar amount. Omit the "$" & "%" signs in your response.) |
| A | B | C | |||||||
| Investment cost | $ | $ | 141,250 | $ | 75,152 | ||||
| Incremental annual cash inflows | 16,000 | 37,000 | 19,000 | ||||||
| Incremental annual cash outflows | 6,000 | 7,800 | |||||||
| Discount rate yielding a net present value of zero | 10 | % | 12 | % | % | ||||
| | |||||||||
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Cima Official Exam Practice Kit Fundamentals Of Ethics Corporate Governance And Business Law Certificate In Business Accounting
Authors: Larry Mead
4th Edition
1856177092, 978-1856177092
