Riley Industries is considering an investment that will require an initial cash outlay of $200,000 to purchase non-depreciable assets.The project promises to return $60,000 per year (after-tax)for eight years with no salvage value.The company's cost of capital is 11 percent.
The company is uncertain about its estimate of the life expectancy of the project.How many years must the project generate the $60,000 per year return for the company to at least be indifferent about its acceptance? (Do not consider the possibility of partial year returns. )
Present value tables or a financial calculator are required.

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The Answer of Riley Industries is considering an investment that will require an initial cash outlay of $200,000 to purchase non-depreciable assets.The project promises to return $60,000 per year (after-tax)for eight years with no salvage value.The company's cost of capital is 11 percent.
The company is uncertain about its estimate of the life expectancy of the project.How many years must the project generate the $60,000 per year return for the company to at least be indifferent about its acceptance? (Do not consider the possibility of partial year returns. )
Present value tables or a financial calculator are required.

Riley Industries Is Considering an Investment That Will Require an Initial