Freeman Corporation bought a piece of machinery. Selected data is presented below:Useful life 6 yearsYearly net cash inflow P45,000Salvage value -0 -Internal rate of return 18%• Cost of capital 15%The discounted payback period is

Annual cashflow (A) = P 45000 IRR = i = 18% Let the first cost = C MARR = r = 15% n = 6 years

Answered: Freeman Corporation bought a piece of…

Principles of Accounting Volume 2

19th Edition

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Author:OpenStax

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Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 21EA: Cinemar Productions bought a piece of equipment for $55,898 that will last for 5 years. The...

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Freeman Corporation bought a piece of machinery. Selected data is presented below: • Useful life 6 years Yearly net cash inflow P45,000 Salvage value - 0 - • Internal rate of return 18% • Cost of capital 15% The discounted payback period is