Assuming you are facing making a decision on a large capital investment proposal. the capital investment amount is $640,000, Estimated the study period is  8 years. The annual revenue at the end of each year is $180,000, and the estimated annual year-end expense is $42000starting in year  one, Assuming a market value at the end year is $ 20,000, and the benchmark rate is 10%,  Find the cash flow chart, the NPV, the dynamic payback period, and the IRR of this project.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter12: Capital Investment Decisions
Section: Chapter Questions
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Assuming you are facing making a decision on a large capital investment proposal. the capital investment amount is $640,000, Estimated the study period is  8 years. The annual revenue at the end of each year is $180,000, and the estimated annual year-end expense is $42000starting in year  one, Assuming a market value at the end year is $ 20,000, and the benchmark rate is 10%, 

Find the cash flow chart, the NPV, the dynamic payback period, and the IRR of this project.

 

 

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