Answered

Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Our platform connects you with professionals ready to provide precise answers to all your questions in various areas of expertise. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Hamell Company has gathered the following data on a proposed investment project: Discount rate 8% Life of the project 8 years Initial investment $330,000 Annual cash inflows 54,450 Salvage value 0 Assume that excess of incremental revenues over the incremental expenses (including depreciation) equal the annual cash inflows. The simple rate of return on the proposed investment is closest to: (Round your answer to 1 decimal place.)

Sagot :

Answer: 16.5%

Explanation:

Following the information given in the question, the simple rate of return on the proposed investment will be calculated thus:

= Annual cash flow / Initial investment

= $54,450 / $330,000

= 0.165

= 16.5%

Therefore, the simple rate of return on the proposed investment is 16.5%.

Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.