Payback period and rate of return
Transit Shuttle Inc. is considering investing in two new vans that are expected to generate combined cash inflows of $20,000 per year. The van's combined purchase price is $65,000. The expected life and salvage value of each are four years and $15,000, respectively. Transit Shuttle has an average cost of capital of 14 percent.© BrainMass Inc. brainmass.com March 21, 2019, 8:52 pm ad1c9bdddf
The expert determines the important information about payback period and rate of returns.