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?
Homework Answers
Answer #1
Sorry for B option
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