What is the average rate of return for this investment? The management of NUBD Co. is...
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What is the average rate of return for this investment? The management of NUBD Co. is considering the purchase of a new machien costing P400,000 with a salvage value of P50,000. The company's desired rate of return is 10%. In addition to the foregoing information, use the following data in determining the acceptability in this situation: Year Income from operations Net cash flow P180,000 1 2 120,000 3 4 5 P100,000 40,000 20,000 10,000 10,000 100,000 90,000 90,000 What is the average rate of return for this investment? The management of NUBD Co. is considering the purchase of a new machien costing P400,000 with a salvage value of P50,000. The company's desired rate of return is 10%. In addition to the foregoing information, use the following data in determining the acceptability in this situation: Year Income from operations Net cash flow P180,000 1 2 120,000 3 4 5 P100,000 40,000 20,000 10,000 10,000 100,000 90,000 90,000
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Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
Posted Date:
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