Solution-What is the equivalent annual cash flow

What is the equivalent annual cash flow

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Considering whether to purchase an oven. A calculates that its current oven generates $3,500 of cash flow per year. A new oven would cost $15,000 and would provide cash flow of $5,00 per year for ten years. What is the equivalent annual cash flow for the new oven (round to the nearest dollar, and should A purchase the new oven? Assume the cost of capital for A's is 12%.

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What is the equivalent annual cash flow

Reference no: EM133113209

Reference no: EM133113209

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