The happy day care center is considering an investment that, Ask an Expert

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The Happy Day Care Center is considering an investment that will require an initial cash outlay of $300,000 to purchase nondepreciable assets that have a 10-year life. The organization requires a minimum 4-year payback.

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Assume that the investment generates equivalent annual cash flow. What minimum amount of annual cash flows must be generated by the project for the company to make the investment?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9949865

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