Samsung invested $21,766 in the current year to expand its manufacturing capacity. Assume that these assets have an 8-year life and generate net cash flows of $4,000 per year, and that Samsung requires a 7% return on its investments. (Samsung $s in millions.) Required: Compute break-even time. (Round "Break even time" answer to 1 decimal place.) Break-even time years
Samsung invested $21,766 in the current year to expand its manufacturing capacity. Assume that these assets have an 8-year life and generate net cash flows of $4,000 per year, and that Samsung requires a 7% return on its investments. (Samsung $s in millions.) Required: Compute break-even time. (Round "Break even time" answer to 1 decimal place.) Break-even time years
Chapter11: Capital Budgeting Decisions
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Transcribed Image Text:Samsung invested $21,766 in the current year to expand its manufacturing capacity. Assume that these assets have an 8-year life and
generate net cash flows of $4,000 per year, and that Samsung requires a 7% return on its investments. (Samsung $s in millions.)
Required:
Compute break-even time. (Round "Break even time" answer to 1 decimal place.)
Break-even time
years
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