Assuming that you would like to buy an equipment for your small business. Using the information below, calculate the Rate of Return and the Pay Back Period for the investment. After presenting your calculations, explain why you think this will (or will not) be a good investment. Here are the numbers: Cost of the investment is $100,000 Estimated depreciable life of investment is 5 years Annual depreciated charge is $15,000 Estimated average profit over depreciable life is $10,000
Assuming that you would like to buy an equipment for your small business. Using the information below, calculate the Rate of Return and the Pay Back Period for the investment. After presenting your calculations, explain why you think this will (or will not) be a good investment. Here are the numbers: Cost of the investment is $100,000 Estimated depreciable life of investment is 5 years Annual depreciated charge is $15,000 Estimated average profit over depreciable life is $10,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assuming that you would like to buy an equipment for your small business. Using the information below, calculate the
Here are the numbers:
Cost of the investment is $100,000
Estimated
Annual depreciated charge is $15,000
Estimated average profit over depreciable life is $10,000.
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