The Income Statement for Pumpkin Co. is shown below:
Pumpkin Co.
Income Stat...
Mathematics, 07.05.2020 06:58 nancieabreu4491
The Income Statement for Pumpkin Co. is shown below:
Pumpkin Co.
Income Statement
for the Month Ended October 21, 2010
revenues
sales
$120,000.00
operating expenses
salary expense
$10,000.00
supplies expense
$14,000.00
depreciation expense
$4,000.00
net income
$92,000.00
Pumpkin Co. is about to embark on a project that will have a total cost of $300,000.00 over a 10-year period.
1. Calculate the expected annual rate of return on this project.
2. Calculate the cash payback on this project.
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