Question: Data table with zero salvage value, and it will cost ( $ 40,000 ). The required rate of return is 12. (Click the icon to

 Data table with zero salvage value, and it will cost \\(\\$ 40,000 \\). The required rate of return is \12. (Click theicon to view the present value factor table_ (Click the icon toview the present value annuity factor table.) Read the requirements. Requirement 1.

Data table with zero salvage value, and it will cost \\( \\$ 40,000 \\). The required rate of return is \12. (Click the icon to view the present value factor table_ (Click the icon to view the present value annuity factor table.) Read the requirements. Requirement 1. What is the payback period? Select the formula and then enter the amounts to calculate the payback period. Present value of \\( \\begin{array}{ccc}\\text { Ordinary Annuity of } \\$ 1 & \\text { Annual Cash } & \\text { Total Present } \\\\ \\text { at } 20 \\text { years, } 12 \\% & \\text { Inflow } & \\text { Value }\\end{array} \\) Net present value: Present value of annuity of equal annual net cash inflows \\( x \\) per year = Less: Initial investment Net present value \\( \\sqrt{11} \\) Present value of Ordinary Annuity of \\$1 Annual Cash Total Present at 12 years, \12 Inflow Value Net present value: Present value of annuity of equal annual net cash inflows Less: Initial investment Net present value \\( x \\) per year \\( = \\) Present value of Ordinary Annuity of \\( \\$ 1 \\) Annual Cash Total Present at 8 years, \12 Inflow Value Net present value: Present value of annuity of equal annual net cash inflows \\( x \\) per year \\( = \\) Less: Initial investment Net present value Data table

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!