The Lake Construction Company is considering an investment of R150,000 for earth moving machine is expected...
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The Lake Construction Company is considering an investment of R150,000 for earth moving machine is expected to generate annual cash inflow of R80,000 for 6 years. Annual maintenance cost of the machine amount to R12.500. The scrap value of the machine at the end of the useful is R10,500. The opportunity cost of capital is 12%. No depreciation was considered. The company uses the straight-line method. Company tax is 25% Determine the payback period. The Lake Construction Company is considering an investment of R150,000 for earth moving machine is expected to generate annual cash inflow of R80,000 for 6 years. Annual maintenance cost of the machine amount to R12.500. The scrap value of the machine at the end of the useful is R10,500. The opportunity cost of capital is 12%. No depreciation was considered. The company uses the straight-line method. Company tax is 25% Determine the payback period. The Lake Construction Company is considering an investment of R150,000 for earth moving machine is expected to generate annual cash inflow of R80,000 for 6 years. Annual maintenance cost of the machine amount to R12.500. The scrap value of the machine at the end of the useful is R10,500. The opportunity cost of capital is 12%. No depreciation was considered. The company uses the straight-line method. Company tax is 25% Determine the payback period. The Lake Construction Company is considering an investment of R150,000 for earth moving machine is expected to generate annual cash inflow of R80,000 for 6 years. Annual maintenance cost of the machine amount to R12.500. The scrap value of the machine at the end of the useful is R10,500. The opportunity cost of capital is 12%. No depreciation was considered. The company uses the straight-line method. Company tax is 25% Determine the payback period.
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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