Compute number of years of useful life for investment


Uncertain Useful Life

Response to the following problem:

The company is considering an investment that costs $500,000 today and will provide $90,000 each year in net cash inflow, but the company is not sure how long the investment will last. The company has a discount rate of 10%.

Compute the number of years of useful life required for this investment to break even.

 

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Financial Accounting: Compute number of years of useful life for investment
Reference No:- TGS02117799

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