Given the following information and ignoring taxes, what is the annual cash revenue that will make the
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Question:
Given the following information and ignoring taxes, what is the annual cash revenue that will make the net present value equal to zero (i.e., the annual cash revenue that will cause us to break-even in the financial sense)?
- Annual cash costs = $14,000
- Life of project = 8 years
- Initial cost of project = $30,000
- Salvage value at end of project = $2,000
- Required rate of return = 15%
Related Book For
Fundamentals of Financial Management
ISBN: 9780273713630
13th Revised edition
Authors: James van Horne, John Wachowicz
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