Andres retires in 5 years he would have to purchase


Andre's retires in 5 years. He would have to purchase equipment costing $400,000 to equip a building and invest an additional $150,000 for inventories. Different buildings have a annual net cash inflow of about $160,000. Anders would close the building in 5 years. They estimate that the equipment could be sold at that time for 10% of its original costing. Andre's required rate of return is 16%.

 

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Financial Accounting: Andres retires in 5 years he would have to purchase
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