total net cash inflows during operating life of the asset ( 100,000yr 8 yrs) $ 800,000 less total depreciation during operating life of the asset ( 600,000 50,000) 550,000 total operating income during operating life $ 250,000 divide by assets operating life in years 8 years average annual operating income from asset $ 31,250

Answer rating: 100% (QA)

Requirement 1 Payback period Investment Expected annual net cash inflow 1910000 483000 395 years or ... View the full answer