Question
The management of Zesty Corporation is considering the purchase of a new machine costing $400,000. The company's desired rate of return is 10%. Use the
The management of Zesty Corporation is considering the purchase of a new machine costing $400,000. The company's desired rate of return is 10%. Use the following data in determining the acceptability in this situation:
|
Year | Income from Operations | Net Cash Flow |
| 1 | $100,000 | $180,000 |
| 2 | 40,000 | 120,000 |
| 3 | 20,000 | 100,000 |
| 4 | 10,000 | 90,000 |
| 5 | 10,000 | 90,000 |
The average rate of return for this investment is_________________________________
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Quality Management System A Planning And Auditing Guide
Authors: Walter Willborn
1st Edition
083113013X, 978-0831130138
