One of the companies is setting up a project to build housing units in which the investment volume is estimated at one million dollars to build (100 houses), the price of the house is (20,000) thousand dollars to be paid in equal installments for a period of (4 years), the annual costs are estimated at (50) thousand dollars. Calculate the simple rate of return, the payback period and the internal rate of return for the project, bearing in mind that the discount rate is the lowest (8%) and the highest (12%) and whether the project is accepted or rejected.

One of the companies is setting up a project to build housing units in which the investment volume is estimated at one million dollars to build (100 houses), the price of the house is (20,000) thousand dollars to be paid in equal installments for a period of (4 years), the annual costs are estimated at (50) thousand dollars. Calculate the simple rate of return, the payback period and the internal rate of return for the project, bearing in mind that the discount rate is the lowest (8%) and the highest (12%) and whether the project is accepted or rejected.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5PA: Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated...

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