(Uncertain project life) Caldwell Hydraulic is evaluating a potential investment project that would have an initial cost...
Question:
(Uncertain project life) Caldwell Hydraulic is evaluating a potential investment project that would have an initial cost of $200,000 and will return $75,000 an¬ nually for 6 years. The company’s cost of capital is 10 percent. Assume that the company is fairly certain regarding the initial cost and the annual return of $75,000, but uncertain as to how many years the $75,000 cash flows will be realized. How many years must the project generate cash flows of $75,000 to be minimally acceptable (ignore tax)?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: