Question
Water Nation is considering purchasing a water park in Atlanta , Georgia for 1,920.000. The new facility will generate annual net cash inflow of 475.000
Water Nation is considering purchasing a water park in Atlanta , Georgia for 1,920.000. The new facility will generate annual net cash inflow of 475.000 for 8 years. Engineers estimate that the new facilities will remain useful for 8 years and have no residual value. The company uses straight- line depreciation , and its stockholders demand an annual returns of 12% on investments of this nature.
Determine the formula and calculate the accounting rate of returns (ARR) . Then Calculate the net present value (NPV). (Enter any factor amounts to three decimal places, X.XXX.)
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
