Analyze nestle csr initiative plan focuses on society issues
This is a CSR project, and choose to nestle as our company Note: Please give answer on mentioned words (must add intext citation) and required
What is the minimum annual cash flow
Assignment Instructions
Assignment Help >> Business Economics
Question:
Most businesses replace their computers every two to three years. Assume that a computer costs $2,000 and that it fully depreciates in 3 years, at which point it has no resale value and is thrown away.
Instructions: Enter your responses rounded to the nearest dollar.
a. If the interest rate for financing the equipment is 10 percent, what is the minimum annual cash flow that a computer must generate to be worth the purchase?
The minimum annual cash flow must be at least $.
b. Suppose the computer did not fully depreciate but still had a $250 value at the time it was replaced. What is the minimum annual cash flow that a computer must generate to be worth the purchase?
The minimum annual cash flow must be at least $.
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