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| Teaching Since: | Apr 2017 |
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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Vegeta Company is considering a capital investment of
$191,100 in additional productive facilities. The new
machinery is expected to have a useful life of 5 years with
no salvage value. Depreciation is by the straight-line
method. During the life of the investment, annual net
income and net annual cash flows are expected to be
$14,280 and $49,120, respectively. Vilas has a 12% cost
of capital rate, which is the required rate of return on the
investment. (Refer the below table)
Compute the cash payback period. (Round answer to 1 decimal place,
e.g. 10.5.)
Compute the annual rate of return on the proposed
capital expenditure. (Round answer to 1 decimal
place, e.g. 20.5.)
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