Question: L> Moving to another question will save this response Question 5 of 22 > >> Question 5 2 points Save Answer The management of Indiana
L> Moving to another question will save this response Question 5 of 22 > >> Question 5 2 points Save Answer The management of Indiana Corporation is considering the purchase of a new machine costing $100,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability of this investment: Income from Operations Net Cash Elow Yes $100,000 60,000 30,000 $180,000 120,000 100,000 90,000 90,000 10,000 10,000 The average rate of return for this investment is a 10% b. 5396 c. 1895 .21%
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