Question: Use the data in Exercise 12-42 for Irv Nelson, Inc., and MACRS. The asset qualifies as a 5-year property. Required Compute for the investment its:
Use the data in Exercise 12-42 for Irv Nelson, Inc., and MACRS. The asset qualifies as a 5-year property.
Required
Compute for the investment its:
1. Payback period under the assumption that the cash inflows occur evenly throughout the year.
2. Book rate of return based on: (a) the initial investment, and (b) an average investment (calculated as a simple average of the 10 average annual book values).
3. Net present value (NPV).
4. Internal rate of return (IRR).
5. Modified internal rate of return(MIRR).
Pre-tax Net Pre-tax Net Cash Cash Year Inflow Year Inflow 50,000 300,000 80,000 270,000 3 120,000 240,000 200,000 4 120,000 5 240,000 10 40,000 2.
Step by Step Solution
3.49 Rating (162 Votes )
There are 3 Steps involved in it
1 Payback period Savings or Net Net Cumulative Net Expense Aftertax Aftertax Net Aftertax Cash Depreciation Taxable on Income Income Cash Cash Year In... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
249-B-M-L-P (571).xlsx
300 KBs Excel File
Study Help