The management of retz corporation is considering the purchase of a new machine costing $500,000. the company's desired rate of return is 10%. the present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. in addition to the foregoing information, use the following data in determining the acceptability of this investment:
year income from operations net cash flow
1 $100,000 $180,000
2 40,000 120,000
3 20,000 100,000
4 10,000 90,000
5 10,000 90,000
the present value index for this investment is:
Answers: 3
Business, 22.06.2019 11:30, zahradawkins2007
Marta communications, inc. has provided incomplete financial statements for the month ended march 31. the controller has asked you to calculate the missing amounts in the incomplete financial statements. use the information included in the excel simulation and the excel functions described below to complete the task
Answers: 1
Business, 22.06.2019 20:00, pickelswolf3036
On january 1, year 1, purl corp. purchased as a long-term investment $500,000 face amount of shaw, inc.’s 8% bonds for $456,200. the bonds were purchased to yield 10% interest. the bonds mature on january 1, year 6, and pay interest annually on january 1. purl uses the effective interest method of amortization. what amount (rounded to nearest $100) should purl report on its december 31, year 2, balance sheet for these held-to-maturity bonds?
Answers: 1
The management of retz corporation is considering the purchase of a new machine costing $500,000. th...
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