Homework Tutorials: to return $60,000 per year (after-tax) for eight years with no salvage value. The company's cost of

to return $60,000 per year (after-tax) for eight years with no salvage value. The company's cost of

capital is 11 percent.

Refer to Small Corporation. 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.

Homework Tutorials