Oriental Company has gathered the following data on a proposed investment project. The company uses straight-line depreciation

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Oriental Company has gathered the following data on a proposed investment project. The company uses straight-line depreciation on all equipment.

Investment in depreciable equipment: $200,000

Annual cash flows: $50,000

life of the equipment: 10 years

Salvage value: $0

Discount rate: 10%

Required:

What is the payback period for the investment?

What is the simple rate of return on the investment?

What is the net present value of this investment?

Related Book For answer-question

Managerial Accounting

ISBN: 978-1259024900

9th canadian edition

Authors: Ray Garrison, Theresa Libby, Alan Webb

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Posted Date: Jul 07, 2022 01:48 AM

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Oriental Company has gathered the following data on a proposed investment project. The company uses straight-line depreciation

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a Payback period for the investment Initial investment Annual net cash flows 200000 50000 4 years Th... View the full answer

Managerial Accounting

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