Year Cash Flow 0 -$50,000 1 X 2 X 3 ( X +$10,000 ) According to the table, A new investment project is proposed. The required initial investment is $ 50,000 and the expected salvage value is $ 10,000 at the 3nd of 3 years. A 15 % return on investment is desired. What should be the minimum annual net cash flows over three years?
Year Cash Flow 0 -$50,000 1 X 2 X 3 ( X +$10,000 ) According to the table, A new investment project is proposed. The required initial investment is $ 50,000 and the expected salvage value is $ 10,000 at the 3nd of 3 years. A 15 % return on investment is desired. What should be the minimum annual net cash flows over three years?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...
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Year | Cash Flow |
0 | -$50,000 |
1 | X |
2 | X |
3 | ( X +$10,000 ) |
According to the table, A new investment project is proposed. The required initial investment is $ 50,000 and the expected salvage value is $ 10,000 at the 3nd of 3 years. A 15 % return on investment is desired. What should be the minimum annual net cash flows over three years?
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