Primus Corp. management is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45%. The cost of this project will be $7,125,000. It will result in additional cash flows of $1,875,000 for the next 8 years. The dicount rate is 12 % What is the payback period?
Primus Corp. management is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45%. The cost of this project will be $7,125,000. It will result in additional cash flows of $1,875,000 for the next 8 years. The dicount rate is 12 % What is the payback period?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3EA: If a copy center is considering the purchase of a new copy machine with an initial investment cost...
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Primus Corp. management is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45%. The cost of this project will be $7,125,000. It will result in additional cash flows of $1,875,000 for the next 8 years. The dicount rate is 12 %
What is the payback period?
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