Thunder Corporation, an amusement park, is considering a capital nvestment in a new exhibit. Amusement parks need to rotate exhibits to keep people interested. Additional information concerning the potential investment follows. Original cost of investment Estimated sales value at end of 5 years Expected increase in annual cash flows Estimated useful life in years Borrowing rate Cost of capital $ 136,000 60,000 25,000 5 years 8.0% 10.0%
Thunder Corporation, an amusement park, is considering a capital nvestment in a new exhibit. Amusement parks need to rotate exhibits to keep people interested. Additional information concerning the potential investment follows. Original cost of investment Estimated sales value at end of 5 years Expected increase in annual cash flows Estimated useful life in years Borrowing rate Cost of capital $ 136,000 60,000 25,000 5 years 8.0% 10.0%
Accounting Information Systems
10th Edition
ISBN:9781337619202
Author:Hall, James A.
Publisher:Hall, James A.
Chapter15: Auditing It Controls Part Ii: Security And Access
Section: Chapter Questions
Problem 12P
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