Capital budgeting
Flynn Corporation is debating whether to purchase a new computerized production system.The system will cost $450,000,and have an estimated 10-year life with a salvage value of $70,000.The estimated operating results from the new production system are as follows: All revenue and expenses other than depreciation will be received and paid in cash.Compute the following for this proposal: (rounded)
(a)Annual net cash flow: $__________
(b)Payback period: __________
(c)Return on average investment: __________
(d)Net present value,discounted at an annual rate of 6% (present value of $1 due in 10 years,discounted at 6%,is 0.558; present value of $1 received annually for 10 years,discounted at 6%,is 7.360): $__________

Question

Capital budgeting
Flynn Corporation is debating whether to purchase a new computerized production system.The system will cost $450,000,and have an estimated 10-year life with a salvage value of $70,000.The estimated operating results from the new production system are as follows:  All revenue and expenses other than depreciation will be received and paid in cash.Compute the following for this proposal: (rounded)
(a)Annual net cash flow: $__________
(b)Payback period: __________
(c)Return on average investment: __________
(d)Net present value,discounted at an annual rate of 6% (present value of $1 due in 10 years,discounted at 6%,is 0.558; present value of $1 received annually for 10 years,discounted at 6%,is 7.360): $__________

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The Answer of Capital budgeting
Flynn Corporation is debating whether to purchase a new computerized production system.The system will cost $450,000,and have an estimated 10-year life with a salvage value of $70,000.The estimated operating results from the new production system are as follows:  All revenue and expenses other than depreciation will be received and paid in cash.Compute the following for this proposal: (rounded)
(a)Annual net cash flow: $__________
(b)Payback period: __________
(c)Return on average investment: __________
(d)Net present value,discounted at an annual rate of 6% (present value of $1 due in 10 years,discounted at 6%,is 0.558; present value of $1 received annually for 10 years,discounted at 6%,is 7.360): $__________

Capital Budgeting Flynn Corporation Is Debating Whether to Purchase a New Computerized