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what formula is needed to calculate this problem? Patricia is hoping that an investment of $29,800 will provide additional revenue to the store of $18,100
what formula is needed to calculate this problem?
Patricia is hoping that an investment of $29,800 will provide additional revenue to the store of $18,100 per year for 3 years. Her partner in crime, John, is confident that a larger investment of $39,600 will be required to bring in a steady flow of $23,200 in new revenue per year for 3 years. Determine the discounted payback period for each investment (using before-tax cash flows). The company's required rate of return is 9\%. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places e.g. 15.25.) Click here to view the factor table Whose investment appears to better use the company's resources? An initial investment of $50,000 in Sheffield's Bunks is expected to pay off greatly-but not equally-in each of the next 5 years. The company expects a small increase in operating income in year 1 of $5,125, but then steadily larger improvements in profitability in years 25 : $10,500,$20,250,$21,500, and $25,125, respectively. The year prior to this investment, the company's ARR was 9%, and its tax rate was 20%. What level of ARR does this projection provide? (Round answer to 2 decimal places, e.g. 15.25\%.) Patricia is hoping that an investment of $29,800 will provide additional revenue to the store of $18,100 per year for 3 years. Her partner in crime, John, is confident that a larger investment of $39,600 will be required to bring in a steady flow of $23,200 in new revenue per year for 3 years. Determine the discounted payback period for each investment (using before-tax cash flows). The company's required rate of return is 9\%. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places e.g. 15.25.) Click here to view the factor table Whose investment appears to better use the company's resources? An initial investment of $50,000 in Sheffield's Bunks is expected to pay off greatly-but not equally-in each of the next 5 years. The company expects a small increase in operating income in year 1 of $5,125, but then steadily larger improvements in profitability in years 25 : $10,500,$20,250,$21,500, and $25,125, respectively. The year prior to this investment, the company's ARR was 9%, and its tax rate was 20%. What level of ARR does this projection provide? (Round answer to 2 decimal places, e.g. 15.25\%.)Step by Step Solution
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