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indigo2

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I was given following task:

A food processing company has to make a decision whether or not to expand its production facilities. A feasibility study showed the following estimates:

Initial cost outlay €800,000

Further outlay in 4 years €600,000

Residual value after 10 years €200,000

Net returns at the end of each year for 10 years €220,000

Indicate whether the expansion should be undertaken if the desired rate of return on investment is 13%. Apply the annuity method!

I do not know how to use the annuity method to this task, I thought this would be solved with present value method, or can both be done? What is the right formula to use the annuity method here?

I am happy about any hint how to solve it! :)