Tilly\'s Travel Service has made an investment in certain equipment that cost th

Question

Tilly's Travel Service has made an investment in certain equipment that cost the company $307,736. The equipment is expected to generate cash inflows of $52,000 each year.

Use your financial calculator or excel to determine how many years the equipment will have to be used in order to provide the company with a 13% return on its investment.

Tilly's Travel Service has made an investment in certain equipment that cost the company $307,736. The equipment is expected to generate cash inflows of $52,000 each year.

Explanation / Answer

No of Year = nper(rate,pmt,pv,fv)

rate = 13%

pmt = 52000

pv = 307736

fv = 0

No of Year = nper(13%,52000,-307736,0)

No of Year = 12 years

Answer

12 years

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.