Coffee Beanie is considering a new location for a coffee shop. The store requires an investment...
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Coffee Beanie is considering a new location for a coffee shop. The store requires an investment of $400,000 and has a useful life of five years with no estimated salvage value. The minimum acceptable return is 8%. The estimated net income from the new store is as follows: Net Income 10,000 20,000 30,000 20,000 10,000 90,000 Yaar 1 2 Total Calculate the Net Present Value (show calculations above) Calculate the Payback Period Should the company make the investment? Why? Coffee Beanie is considering a new location for a coffee shop. The store requires an investment of $400,000 and has a useful life of five years with no estimated salvage value. The minimum acceptable return is 8%. The estimated net income from the new store is as follows: Net Income 10,000 20,000 30,000 20,000 10,000 90,000 Yaar 1 2 Total Calculate the Net Present Value (show calculations above) Calculate the Payback Period Should the company make the investment? Why?
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Answer rating: 100% (QA)
Net Present Value Present Value 400000 90000108 900001082 900001083 9... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
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