Solved

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

Question 152

Essay

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.)
abcd Investment  Annual  Year-end  Time  Balance During the  Cash  Return on  Recovered  Investment  Period  Year  Inflow  Investment  Investment  Balance 1$360,27523\begin{array}{cccccc} & \text {a}& \text {b}& \text {c}& \text {d}& \\& \text { Investment } & \text { Annual } & & & \text { Year-end } \\\text { Time } & \text { Balance During the } & \text { Cash } & \text { Return on } & \text { Recovered } & \text { Investment } \\\text { Period } & \text { Year } & \text { Inflow } & \text { Investment } & \text { Investment } & \text { Balance }\\1&\$360,275\\2\\3\end{array}

Correct Answer:

verifed

Verified

None...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents