Fletcher Corp.is considering the purchase of a new piece of equipment.The equipment will have an initial cost of $400,000,a 5-year life,and a salvage value of $75,000.If the accounting rate of return for the project is 10%,what is the annual increase in net cash flow? Ignore income taxes.

Question

Quizplus · Accepted Answer

The Answer of Fletcher Corp.is considering the purchase of a new piece of equipment.The equipment will have an initial cost of $400,000,a 5-year life,and a salvage value of $75,000.If the accounting rate of return for the project is 10%,what is the annual increase in net cash flow? Ignore income taxes.