Your company wants to invest JD 10,000,000 in network, taking into consideration the below table: Investment 10,000,000.00 Lifetime 10 Annual Revenues in Yearl 2,000,000.00 Annual decline in revenues from Y2 2% Direct Cost % of revenues 30% OPEX % of revenues 15% Interest Discount rate/fWACC) 7%

Your company wants to invest JD 10,000,000 in network, taking into consideration the below table: Investment 10,000,000.00 Lifetime 10 Annual Revenues in Yearl 2,000,000.00 Annual decline in revenues from Y2 2% Direct Cost % of revenues 30% OPEX % of revenues 15% Interest Discount rate/fWACC) 7%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

PROGRAMS
SELF DEVELOPMENT
E-LIBRARY
ZAIN H
What is the ręturn on Investment (ROI) and net present value (NPV) ?
B
mooforwa with this investment and why?

PROGRAMS
SELF DEVELOPMENT
E-LIBRARY
8.
6.
10
11 12
13
14
15
16
Your company wants to invest JD 10,000,000 in network, taking into consideration the below table
Investment
10,000,000.00
Lifetime
Annual Revenues in Yearl
2,000,000.00
2%
Annual decline in revenues from Y2
30%
Direct Cost % of revenues
15%
OPEX % of revenues
7%
Interest Discount rate/fWACC)
CO

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