Mimi company is considering a capital investment of 240000

Reference no: EM13596571

Mimi company is considering a capital investment of $240,000 in new equipment. The equipment is expected to have a 5-year useful life with no salvage value. Depreciation is computed by the straight line method. during the life of the investment. annual net income is expected to be $30,000. Mimi's minimum required rate of return is 10%. The present value of 1 for 5 periods at 10% is .621.
Present value of an annuity of 1:-
Period 8% 9% 10% 11% 12% 15% 16%
5 3.993 3.890 3.791 3.696 3.605 3.352 3.274

Instructions:
Compute each of the following
a) cash payback period.
b) net present value.
c) annual rate of return
d) internal rate of return

Reference no: EM13596571

Questions Cloud

Apparent weight a 550-n physics student stands on a : question apparent weight a 550-n physics student stands on a bathroom scale in an 850-kg including the student elevator

Max wayco the business manager for essey industries must : max wayco the business manager for essey industries must select a new computer system for his assistant. rental of

Apparent weight a 550-n physics student stands on a : question apparent weight a 550-n physics student stands on a bathroom scale in an 850-kg including the student elevator

Gross fixed assets 135400 163200less accumulated : part of the long-term asset portions of the certis inc. balance sheets for december 31 2004 and december 31 2005 look

Mimi company is considering a capital investment of 240000 : mimi company is considering a capital investment of 240000 in new equipment. the equipment is expected to have a 5-year

The total cost in dollars of manufacturing x auto body : the total cost in dollars of manufacturing x auto body frames is cx 60000 300x find the average cost per unit if 500

On its 2008 income statement mertis recorded depreciation : mertis inc. reported net fixed assets as follows on its balance sheets for december 31 2007 and december 31 2008 look

Assume that kertis had accumulated depreciation in 2007 of : kertis inc. reported net fixed assets as follows on its balance sheets for december 31 2007 and december 31 20082007

Assume the beginning inventory at cost retail were 265600 : barker pet supply uses the conventional retail method to determine its ending inventory at cost. assume the beginning

User Account

All Pages