Tech Consulting is considering an investment in new equipmen…
Tech Consulting is considering an investment in new equipment that would allow the company to offer new services to its clients. The equipment costs $550,000, has a useful life of 10 years, and has a salvage value of $90,000. If Tech purchases the new equipment, it can sell its old equipment for $30,000. What annual net cash inflow must be generated by this investment in order to achieve a simple rate of return of 12%?
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