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>\ Gem Robotics is evaluating an investment in automated production lines for its factory. The project requires an initial investment of $800,000. The company expects cash inflows of $225,000 per year for 5 years. The company's target is a 18% ROI and a maximum payback period of 6 years. For each answer, provide your answer to two decimal places. Enter % as whole numbers (i.e. 48.68% would be entered 48.68) What is the return on investment? 40.63 What is the payback period? 3.56 What is your recommendation? Invest

>\ Gem Robotics is evaluating an investment in automated production lines for its factory. The project requires an initial investment of $800,000. The company expects cash inflows of $225,000 per year for 5 years. The company's target is a 18% ROI and a maximum payback period of 6 years. For each answer, provide your answer to two decimal places. Enter % as whole numbers (i.e. 48.68% would be entered 48.68) What is the return on investment? 40.63 What is the payback period? 3.56 What is your recommendation? Invest

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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>\ Gem Robotics is evaluating an investment in automated production lines for its factory. The project requires an initial investment of $800,000. The company expects cash inflows of $225,000 per year for 5 years. The company's target is a 18% ROI and a maximum payback period of 6 years. For each answer, provide your answer to two decimal places. Enter % as whole numbers (i.e. 48.68% would be entered 48.68) What is the return on investment? 40.63 What is the payback period? 3.56 What is your recommendation? Invest
Transcribed Image Text:>\ Gem Robotics is evaluating an investment in automated production lines for its factory. The project requires an initial investment of $800,000. The company expects cash inflows of $225,000 per year for 5 years. The company's target is a 18% ROI and a maximum payback period of 6 years. For each answer, provide your answer to two decimal places. Enter % as whole numbers (i.e. 48.68% would be entered 48.68) What is the return on investment? 40.63 What is the payback period? 3.56 What is your recommendation? Invest
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