al investment $450,000 Incremental net cash flows year 1 $285,000 Incremental net cash flows year 2 $125,000 Incremental net cash flows year 3 $168,000 $23,746 $12,280 $ 5,333 $38,483
al investment $450,000 Incremental net cash flows year 1 $285,000 Incremental net cash flows year 2 $125,000 Incremental net cash flows year 3 $168,000 $23,746 $12,280 $ 5,333 $38,483
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
(Ignore income taxes in this problem.) Your Corporation is considering the acquisition of equipment that has a useful life of 3 years with no salvage value. The discount rate is 12%. Use the following information about the incremental net
Initial investment
|
|
$450,000
|
Incremental net cash flows year 1
|
|
$285,000
|
Incremental net cash flows year 2
|
|
$125,000
|
Incremental net cash flows year 3
|
|
$168,000
|
$23,746 |
||
$12,280 |
||
$ 5,333 |
||
$38,483 |
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