nco purchased a computer for $200,000, and this machine is expected to generate annual cash flows of $48,271 over the next 5 years. What is the expected rate of return on this investment? a. 8.84% b. 26.58% c. 6.61% d. None of these are correct
nco purchased a computer for $200,000, and this machine is expected to generate annual cash flows of $48,271 over the next 5 years. What is the expected rate of return on this investment? a. 8.84% b. 26.58% c. 6.61% d. None of these are correct
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 10PB: Bouvier Restaurant is considering an investment in a grill that costs $140,000, and will produce...
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Question
Inco purchased a computer for $200,000, and this machine is expected to generate annual cash flows of $48,271 over the next 5 years. What is the expected rate of return on this investment ?
a. |
8.84%
|
|
b. |
26.58%
|
|
c. |
6.61%
|
|
d. |
None of these are correct
|
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