Zetamax is considering buying a new bar-coding machine for its Austin, Texas, plant. The data for...
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Zetamax is considering buying a new bar-coding machine for its Austin, Texas, plant. The data for the machine follow: Cost of machine... Estimated residual value Estimated annual net cash inflow. Estimated useful life Required rate of return Required 1. Compute the bar-coding machine's payback period. 2. Compute the bar-coding machine's accounting rate of return. 3. Compute the bar-coding machine's net present value. 4. Would you buy the bar-coding machine? Why? $48,000 $ 0 $13,000 5 years 16% Zetamax is considering buying a new bar-coding machine for its Austin, Texas, plant. The data for the machine follow: Cost of machine... Estimated residual value Estimated annual net cash inflow. Estimated useful life Required rate of return Required 1. Compute the bar-coding machine's payback period. 2. Compute the bar-coding machine's accounting rate of return. 3. Compute the bar-coding machine's net present value. 4. Would you buy the bar-coding machine? Why? $48,000 $ 0 $13,000 5 years 16%
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Answer rating: 100% (QA)
Payback period To calculate the payback period we need to determine how long it will take for the cumulative cash inflows to equal the initial cost of ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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