1) XYZ Company is considering investing in a project that requires an initial investment of $200,000 for some machinery. There will be net inflows of $50,000 for the first two years, $35,000 in years three and four, and $50,000 in year five. Find the accounting rate of return for the machine. 3) A project requires an initial investment of $200,000 and is expected to generate the following net cash inflows: PROJECT A Year 1:60,000 Year 2:60,000 Year 3:80,000 Year 4:30,000 Year 5:30,000 Required: Compute the Pay back Period if the minimum desired rate of return is 10%. PVIF .909, .826, .751, .680, .623
1) XYZ Company is considering investing in a project that requires an initial investment of $200,000 for some machinery. There will be net inflows of $50,000 for the first two years, $35,000 in years three and four, and $50,000 in year five. Find the accounting rate of return for the machine. 3) A project requires an initial investment of $200,000 and is expected to generate the following net cash inflows: PROJECT A Year 1:60,000 Year 2:60,000 Year 3:80,000 Year 4:30,000 Year 5:30,000 Required: Compute the Pay back Period if the minimum desired rate of return is 10%. PVIF .909, .826, .751, .680, .623
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![1) XYZ Company is considering investing in a project
that requires an initial investment of $200,000 for
some machinery. There will be net inflows of $50,000
for the first two years, $35,000 in years three and
four, and $50,000 in year five. Find the accounting
rate of return for the machine.
3) A project requires an initial investment of $200,000 and is expected
to generate the following net cash inflows:
PROJECT A
Year 1:60,000
Year 2:60,000
Year 3:80,000
Year 4:30,000
Year 5:30,000
Required: Compute the Pay back Period if the minimum desired rate of
return is 10%.
PVIF .909, .826, .751, .680, .623](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1dc0a468-04d7-4302-bc97-69fedf12ff98%2F660979b2-04b7-4ee8-a296-0e09f10e0470%2F2f6kued_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1) XYZ Company is considering investing in a project
that requires an initial investment of $200,000 for
some machinery. There will be net inflows of $50,000
for the first two years, $35,000 in years three and
four, and $50,000 in year five. Find the accounting
rate of return for the machine.
3) A project requires an initial investment of $200,000 and is expected
to generate the following net cash inflows:
PROJECT A
Year 1:60,000
Year 2:60,000
Year 3:80,000
Year 4:30,000
Year 5:30,000
Required: Compute the Pay back Period if the minimum desired rate of
return is 10%.
PVIF .909, .826, .751, .680, .623
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