John kirk owns a golf course and wants to add computers to the lounge. The cost of computers is 15000, 3 year life, no residual value, expected to generate 12000 annual cash flows, discount rate 8 %. Should he make an investment and why? Please show all calculations and formulas
John kirk owns a golf course and wants to add computers to the lounge. The cost of computers is 15000, 3 year life, no residual value, expected to generate 12000 annual cash flows, discount rate 8 %. Should he make an investment and why? Please show all calculations and formulas
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
Problem 1PS
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Transcribed Image Text:John kirk owns a golf course and wants to add computers to the lounge. The cost of computers is 15000,
3 year life, no residual value, expected to generate 12000 annual cash flows, discount rate 8 %. Should he
make an investment and why?
Please show all calculations and formulas
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