The following information relates to three independent investment decisions by Buckle Enterprises, each with a 10-year life and no salvage value:
Using the present value tables in Exhibits 26-3 and 26-4, compute the missing information pertaining to each investment proposal. |
|
A |
B |
C |
Investment cost |
$ |
|
|
$ |
141,250 |
|
$ |
92,598 |
|
Incremental annual cash inflows |
|
15,000 |
|
|
37,000 |
|
|
20,000 |
|
Incremental annual cash outflows |
|
6,200 |
|
|
|
|
|
6,200 |
|
Discount rate yielding a net present value of zero |
|
10 |
% |
|
12 |
% |
|
|
% |
|