Question: quick response needed. just making sure i have it right The management of Retz Corporation is considering the purchase of a new machine costing $500,000.
The management of Retz Corporation is considering the purchase of a new machine costing $500,000. The company's desired rate of return is 10%. The present value factors for si at compound interest of 10% for 1 through 5 years are 0.909, 0.525, 0.751, 0.583, and 0.621, respectively. In addition to the foregoing informa use the following data in determining the acceptability in this situation: Year Income from Operations $100,000 Net Cash Flow 2 2 80.000 $200,000 170,000 130,000 3 50.000 4 10.000 80,000 5 10.000 80.000 The cash payback penod for this investment is a. 3 years D. VAS C. 2 years d. 5 years
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