Ignore income taxes in this problem bill anders retires in, Ask an Expert

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(Ignore income taxes in this problem.) Bill Anders retires in 5 years. He would have to purchase equipment costing $500,000 to equip the outlet and invest an additional $150,000 for inventories and other working capital needs. Other outlets in the fast-food chain have an annual net cash inflow of about $160,000. Mr. Anders would close the outlet in 5 years. He estimates that the equipment could be sold at that time for about 10% of its original cost and the working capital would be released for use elsewhere. Mr. Anders' required rate of return is 16%.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91971908

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