Question
You are making an investment of $1,000,000, with the discount rate of 10%. You will earn $500,000 per year due to the investment, but you
You are making an investment of $1,000,000, with the discount rate of 10%. You will earn $500,000 per year due to the investment, but you will also have to spend $200,000 per year to keep the investment going. This investment plan is for 5 years.
Calculate:
a) The NPV of the investment
b) The IRR
c) Simple payback time
d) Discounted payback time
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
