Different ways financial manager can choose benchmark

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1. The Spector Corporation buys a machine for $20000 and expects revenue of $4770.42 per year for the next ten years. What is the expected rate of return on the machine?

2. Discuss the three different ways a financial manager can choose a benchmark. Provide an example for each.

3. The oil company has offered you a payment of $38/acre on your land in perpetuity for oiling drilling rights. If you anticipate earning 5% annually on this payment when you invest it, what is the equivalent present value payment?

Reference no: EM131956467

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