Question

can buy a machine that is expected to have a three-year life and a $30,000 salvage...

can buy a machine that is expected to have a three-year life and a $30,000 salvage value. It will be depreciated using the straight-line method. The machine will cost $2,100,000 and is expected to produce a $200,000 after-tax net income to be received at the end of each year. The company requires a 12% rate of return on its investments.

a,

What is the payback period?

B

accounting rate of return?

c

Net present value?

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Answer #1

Sorry for B option

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