Question: need solution please QUESTION 1: Final Company is considering a project that would have a 6-year useful life and require a $140,000 investment in equipment.
QUESTION 1: Final Company is considering a project that would have a 6-year useful life and require a $140,000 investment in equipment. At the end of six years, the project would terminate, and the equipment would have $20,000 of salvage (residual) value. The equipment will need a repair that costs $10,000 at the end of the 3rd year. The company's discount rate is 12%. The project would provide net operating income each year as follows: Required: 1. Compute the annual net cash inflow from the project. 2. Compute the project's net present value. 3. Compute the project's payback period. 4. Compute the project's accounting rate of return. 5. Should the company make the investment? Stateyourdecisionandexplainvourfindings
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