A company requires an initial investment of $40000. The estimated cash flows are as follows: Year...
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A company requires an initial investment of $40000. The estimated cash flows are as follows: Year 1 2 3 4 5 6 7 8 9 10 7000 7000 7000 7000 7000 8000 10000 15000 10000 4000 1. Calculate Pay-back period. 2. Calculate Net Present Value at 10% cost of capital (rate of discount) A company requires an initial investment of $40000. The estimated cash flows are as follows: Year 1 2 3 4 5 6 7 8 9 10 7000 7000 7000 7000 7000 8000 10000 15000 10000 4000 1. Calculate Pay-back period. 2. Calculate Net Present Value at 10% cost of capital (rate of discount)
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To calculate the payback period we need to determine the point in time when the cumulative cash infl... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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