Question: Ursus, Incorporated, is considering a project that would have a ten - year life and would require a $ 1 , 8 0 6 ,
Ursus, Incorporated, is considering a project that would have a tenyear life and would require a $ investment in equipment. At the end of ten years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows Ignore income taxes.:
Sales $
Variable expenses
Contribution margin
Fixed expenses:
Fixed outofpocket cash expenses $
Depreciation
Net operating income $
Click here to view Exhibit B and Exhibit B to determine the appropriate discount factors using the tables provided.
All of the above items, except for depreciation, represent cash flows. The company's required rate of return is
Required:
Compute the project's net present value.
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
Compute the project's internal rate of return.
Note: Round your final answer to the nearest whole percent.
Compute the project's payback period.
Note: Round your answer to decimal place.
Compute the project's simple rate of return.
Note: Round your final answer to the nearest whole percent.
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