Mathematics, 23.03.2021 01:00 yogibear5806

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.

Answers: 2

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The Income Statement for Pumpkin Co. is shown below: Pumpkin Co.

Income Statement
...