Financial Statement Analysis Portfolio
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.
Calculate the expected annual rate of return on this project.
Calculate the cash payback on this project.
I got 10.67 for annual rate of return but i know its wrong.