BUS 278 WEEK 4 MID TERM Question 12
- ashford university / BUS 278
- 22 Aug 2015
- Price: $3
- Other / Other
BUS 278 WEEK 4 MID TERM Question 12 TCO 6 Top Growth Farms, a farming cooperative, is considering purchasing a tractor for $468,000. The machine has a 10-year life and an estimated salvage value of $32,000. Top Growth uses straight-line depreciation. Top Growth estimates that the annual cash flow will be $78,000. The required rate of return is 9%. Part (a): Calculate the payback period. Part (b): Calculate the net present value. Part (c): Calculate the accounting rate of return.