The following details are provided by a manufacturing company: Investment Useful life Estimated annual net cash inflows for first year Estimated annual net cash inflows for second year Estimated annual net cash inflows for next ten years Residual value Product line $1,030,000 12 years $460,000 $430,000 $190,000 $50,000 Straight-line Depreciation method Required rate of return Calculate the payback period for the investment. (Round your answer to two decimal places.) 12%
The following details are provided by a manufacturing company: Investment Useful life Estimated annual net cash inflows for first year Estimated annual net cash inflows for second year Estimated annual net cash inflows for next ten years Residual value Product line $1,030,000 12 years $460,000 $430,000 $190,000 $50,000 Straight-line Depreciation method Required rate of return Calculate the payback period for the investment. (Round your answer to two decimal places.) 12%
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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