3. The company will invest $150,000 in a project and average annual income $50,000. The investment will provide the following inflows: Year Cash inflow 1 $ 25,000 2 45,000 3 30,000 4 50,000 5 70,000 Calculate: Net present value at 10% discount factor. Payback period
3. The company will invest $150,000 in a project and average annual income $50,000. The investment will provide the following inflows: Year Cash inflow 1 $ 25,000 2 45,000 3 30,000 4 50,000 5 70,000 Calculate: Net present value at 10% discount factor. Payback period
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...
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Q3) 3. The company will invest $150,000 in a project and average annual income $50,000. The investment will provide the following inflows:
|
Year |
|
|
1 |
$ 25,000 |
|
2 |
45,000 |
|
3 |
30,000 |
|
4 |
50,000 |
|
5 |
70,000 |
Calculate:
Net present value at 10% discount factor.- Payback period
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