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What is the formula for Formula 2? The answer should come out to be 17.00% CAPBUD Capital Budgeting Data Section $500,000 Cost of investment (initial
What is the formula for Formula 2? The answer should come out to be 17.00%
CAPBUD Capital Budgeting Data Section $500,000 Cost of investment (initial outlay) Estimated life of investment Estimated salvage value Estimated annual net cash inflow Required rate of return 10 years $25,000 $110,000 20.00% Answer Section 4.55 years Payback period Accounting (average) rate of return Net present value Internal rate of return FORMULA 2 ($34,790) 17.95% Scratch Pad Cash flow table needed for NPV & IRR calculations NPV IRRStep by Step Solution
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