Question
yappy company is considering a capital investment of $320,000 in additional equipment. The new equipment si expected to have a useful life of 8 years
yappy company is considering a capital investment of $320,000 in additional equipment. The new equipment si expected to have a useful life of 8 years with no salvage value. depreciation is computed by the straight line method. during the life of the investment annual net income and cash inflows nare expected to be $25,000 and $65,00, respectively. yappy rerquires a 10% return on all new investments.
part a compute each of the following
1. paychck perios
2. net present value
3. profitability index
4. internal rate of return
5 accounting rate of return.
b indicate whetehr the investement should be accepted or rejected
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