Gordon Company is considering a three-year capital investment that will return $150,000 per year.The present value of this annuity at the company's required rate of return of 12% is $360,275.
Required:
Complete the table that has been started below to show the return on investment at 12% and the amount of investment recovered each year.Remember that the investment balance should be zero at the end of the three years.(Round to the nearest whole dollar. ) $\begin{array}{|c|c|c|c|c|c|}
\hline& \text { a } & \text { b } & \text { c } & \text { d } & \
\hline &\text { Investment } & \text { Annual } & \text { Return on } & \text { Recovered } & \text { Year-end } \
\hline \text {Time} & \text { Balance During } & \text { Cash } & \text { Investment } & \text { Investment } & \text { Investment } \
\hline \text { Period } &\text { the Year } & \text { Inflow } & & & \text { Balance } \
\hline 1&\$ 360,275\
\hline 2 \
\hline 2 \
\hline
\end{array}$

Question

Gordon Company is considering a three-year capital investment that will return $150,000 per year.The present value of this annuity at the company's required rate of return of 12% is $360,275.
Required:
Complete the table that has been started below to show the return on investment at 12% and the amount of investment recovered each year.Remember that the investment balance should be zero at the end of the three years.(Round to the nearest whole dollar. ) $\begin{array}{|c|c|c|c|c|c|}
\hline& \text { a } & \text { b } & \text { c } & \text { d } & \
\hline &\text { Investment } & \text { Annual } & \text { Return on } & \text { Recovered } & \text { Year-end } \
\hline \text {Time} & \text { Balance During } & \text { Cash } & \text { Investment } & \text { Investment }  & \text { Investment } \
\hline  \text { Period    } &\text { the Year } & \text { Inflow } & & & \text { Balance } \
\hline  1&\$ 360,275\
\hline 2 \
\hline 2 \
\hline  
\end{array}$

Quizplus · Accepted Answer

The Answer of Gordon Company is considering a three-year capital investment that will return $150,000 per year.The present value of this annuity at the company's required rate of return of 12% is $360,275.
Required:
Complete the table that has been started below to show the return on investment at 12% and the amount of investment recovered each year.Remember that the investment balance should be zero at the end of the three years.(Round to the nearest whole dollar. ) $\begin{array}{|c|c|c|c|c|c|}
\hline& \text { a } & \text { b } & \text { c } & \text { d } & \
\hline &\text { Investment } & \text { Annual } & \text { Return on } & \text { Recovered } & \text { Year-end } \
\hline \text {Time} & \text { Balance During } & \text { Cash } & \text { Investment } & \text { Investment }  & \text { Investment } \
\hline  \text { Period    } &\text { the Year } & \text { Inflow } & & & \text { Balance } \
\hline  1&\$ 360,275\
\hline 2 \
\hline 2 \
\hline  
\end{array}$

Gordon Company Is Considering a Three-Year Capital Investment That Will