Please answer asap Youssef Inc.is considering a capital investment of $320,000 in additional equipment. The new equipment is expected to have a useful life of 8 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash inflows are expected to be $22,000 and $62,000, respectively. Youssef requires a 10% return on all new investments. Present Value of an Annuity of 1 Period 8% 9% 10% 11% 12% 15% 8 5.747 5.535 5.335 5.146 4.968 4.487 Instructions (a) Compute each of the following: Cash payback period. Net present value. Profitability index. Internal rate of return. Annual rate of return. (b) Indicate whether the investment should be accepted or rejected under each decision rule and why.
Please answer asap
Youssef Inc.is considering a capital investment of $320,000 in additional equipment. The new equipment is expected to have a useful life of 8 years with no salvage value.
Present Value of an
Period 8% 9% 10% 11% 12% 15%
8 5.747 5.535 5.335 5.146 4.968 4.487
Instructions
(a) Compute each of the following:
- Cash payback period.
Net present value .- Profitability index.
Internal rate of return .
- Annual rate of return.
(b) Indicate whether the investment should be accepted or rejected under each decision rule and why.
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