Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ebook average rate of retum, cash payback period,

eBook Average Rate of Retum, Cash Payback period, Net Present Value...

80.2K

Verified Solution

Question

Accounting

image
eBook Average Rate of Retum, Cash Payback period, Net Present Value Method Southwest Transportation Inc. is considering a distribution facility at a cost of $112,000. The facility has an estimated life of 10 years and a no residual value. It is expected to provide yearly net cash flows of $56,000. The company's minimum desired rate of return for net present value analysis is 10% Click here to access the present value tables (Exhibit 2 and Exhibit S) to use for this problem. a. Compute average rate of return, giving effect to straight line depreciation on the investment Round to one decimal place, b. Compute the cash payback period. years c. Compute the net present value. If required, use the minus to indicate a negative net present value. Total present value of annual net cash flows Less: amount to be invested Equals: net present value

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

At night, when gazing high up at an electrical tower, one might notice a blinking...

Finance
1.2K views

Risk, Return, and the Capital Asset Pricing ModelAs a first day intern at Tri-Star Management Incorporated...

Chemistry
1.2K views

A 0.120-L sample of an unknown HNO3 solution required 29.1 mL of 0.200 M Ba(OH)2 for...

Advance Math
1.2K views

How to determine all the basic solutions of an optimization problem, and classify them as feasible...

Biology
1.2K views

In Plastic People researchers Guthman and Mansfield suggest that while epigenetics reveals that bodily variance...

Biology
1.2K views

With calcium and ATP present contraction can occur The myosin head cocks bind to actin...

Physics
1.2K views

80 railway wagons all of same mass 5 x 10 kg are pulled by an...

Basic Math
1.2K views

For the following right triangle find the side length x 35 12 X

Algebra
1.2K views

Construct the equation of a 4th degree polynomial with real coefficients that has the following...

Algebra
1.2K views

Consider T(x,y) = (2x-y, -4x+2y), is T invertible? Why or why not? If so, compute...

Accounting
1.2K views

a. Net income was $468,000. b. Issued common stock for $73,000 cash. c. Paid cash...

Finance
1.2K views

You purchase a bond with an invoice price of $1,080. The bond has a coupon...