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The last CEO of Beige Corporation was dismissed by the board of directors for not acquiring assets with a reasonable payback period and rate of
The last CEO of Beige Corporation was dismissed by the board of directors for not acquiring assets with a reasonable payback period and rate of return. The board appointed the new CEO, Martha Matamoro, to the position with stringent guidelines in place. In her first assignment, CEO Matamoro is evaluating whether to recommend a new acquisition to the board.
Enter the appropriate amounts in the associated cells. Round years to the nearest hundredth and dollars to the nearest whole dollar. Enter all amounts as positive numbers.
Question | Answer |
1. Amount of annual depreciation. | |
2. Amount of annual taxable income. | |
3. Amount of annual taxes. | |
4. Amount of annual net income. | |
5. Amount of annual cash inflow. | |
6. Amount of annual depreciation tax shield. | |
7. What is the payback period? | |
8. What is the accounting rate of return (as a percentage)? Round to the nearest tenth. |
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