Overland Corporation has gathered the following data on a proposed investment project:
Investment required in equipment: $150,000
Annual cash inflow: $40,000
Salvage value of equipment: $0
Life of the investment: 10 years
Required rate of return: 10%
The company uses straight-line depreciation on all equipment. Assume cash flows occur
uniformly throughout a year except for the initial investment.
The payback period for the investment is:
A. 0.27 years
B. 3.75 years
C. 10.00 years
D. 2.13 years
The net present value of this investment is:
A. $40,000
B. $3,625
C. $57,831
D. $95,800
The internal rate of return on the investment is closest to:
A. 23%
B. 25%
C. 24%
D. 21%
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Overland Corporation has gathered the following data on a proposed investment project: Investment required in equipment: $150,000 Annual ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Zariah is a middle manager at Simple Solutions, Inc. The company's top management has just announced that they are going to initiate a policy of empowerment.
Answers (1)
On average hotel guests who take elevators weigh about 150 pounds
Answers (1)
The public relations department has played a crucial role in Vencor Inc.’s success. Top management perceptions and the abilities of the concerned authorities were two strengths of the department.
Answers (2)
Which sentences in the passage demonstrate the fulfillment of the legal responsibilities of a financial exchange? Anne is a manager in a financial exchange.
Answers (1)
Carolina has $5,000 saved up from working at different jobs. She puts her money in a savings account that pays 4 percent a year in interest. How much will she be in her account at the end of the first year at the end of the second year?
Answers (1)
New Questions in Business
How many types of management are there in business?
Answers (1)
During 2021, its first year of operations, Pave Construction provides services on account of $160,000. By the end of 2021, cash collections on these accounts total $110,000. Pave estimates that 25% of the uncollected accounts will be uncollectible.
Answers (1)
Suppose the government in this economy decides to decrease government purchases by $300 billion. The decrease in government purchases will lead to a decrease in income, generating an initial change in consumption equal to: A) - $1,000 billion B) -
Answers (1)
The Midwest Division of Frackle Corporation $30 to make, of which $21 is variable. Midwest Division sells Part 7B to other companies for $47. The Northern Division of Frackle Corporation can use Part 7B in one of its products.
Answers (1)
What process involves identifying and controlling the functional and physical design characteristics of products and their support documentation, and ensures that the descriptions of the project's products are correct and complete?
Answers (1)