Plimo Limited is considering an investment in a fixed asset which costs $245,000. The asset is expected
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Plimo Limited is considering an investment in a fixed asset which costs $245,000. The asset is expected to generate cash inflows of $98,000 each year for the next four years. The company intends to sell the asset at the end of year 4 for an estimated residual value of $24,000. The asset will be depreciated straight-line over the next four years. The discount rate for the project is 13%.
Calculate the accounting rate of return, NPV, Pay back period
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
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