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. $\begin{array}{|c|c|c|c|c|c|}
\hline& \text { a } & \text { b } & c & d & \
\hline& \text { Investment } & \text { Annual } & \text { Return on } & \text { Recovered } & \text { Year-end } \
\hline TIME&\text { Balance During } & \text { Cash } & \text { Investment } & \text { Investment } & \text { Investment } \
\hline period&\text { the Year } & \text { Inflow } & & & \text { Balance } \
\hline1& \mathrm{S} \quad 360,275 & & & & \
\hline2\
\hline3\\hline
\end{array}$

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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. $\begin{array}{|c|c|c|c|c|c|}
\hline& \text { a } & \text { b } & c & d & \
\hline& \text { Investment } & \text { Annual } & \text { Return on } & \text { Recovered } & \text { Year-end } \
\hline TIME&\text { Balance During } & \text { Cash } & \text { Investment } & \text { Investment } & \text { Investment } \
\hline period&\text { the Year } & \text { Inflow } & & & \text { Balance } \
\hline1& \mathrm{S} \quad 360,275 & & & & \
\hline2\
\hline3\\hline
\end{array}$

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