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5 A piece of labor-saving equipment has just come onto the market that Mitsul Electronics, Limited, could use to reduce costs in one of its
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A piece of labor-saving equipment has just come onto the market that Mitsul Electronics, Limited, could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: Required: 1a. Compute the payback period for the equipment. 16. If the company requires a payback period of four years or less, would the equipment be purchased? 2a. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. 2b. Would the equipment be purchased if the company's required rate of return is 16% ? Complete this questlon by entering your answers in the tabs below. Compute the payback period for the equipment. (Round your answer to t decimal place.) A piece of labor-saving equipment has just come onto the market that Mitsul Electronics, Limited, could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: Required: 1a. Compute the payback period for the equipment. 16. If the company requires a payback period of four years or less, would the equipment be purchased? 2a. Compute the simple rate of retum on the equipment. Use straight tine depreciation based on the equipment's useful nife. 2b. Would the equipment be purchased if the company's required rate of return is 16% ? Complete this question by entering your answers in the tabs below. If the company requires a payback period of four years or less, would the equipment be purchased? A piece of labor-seving equipment has just come onto the market that Mitsui Electronics, Limited, could use to reduce costs in one of its plants in Jopan. Relevant data relating to the equipment follow: Required: 1a. Compute the payback period for the equipment. 16. If the company requires a payback period of four years or less, would the equipment be purchased? 2a. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. 2b. Would the equipment be purchased if the company's required rate of retum is 16% ? Complete this question by entering your answers in the tabs balow. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful If fe. (Rlound your answer to 1 decimal plach L.e, 0.123 should be considered as 12.3%. ) A piece of labor-soving equipment has just come onto the market that Mitsui Electronics, Limited, could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: Required: ta. Compute the payback period for the equipment. 1b. If the company requires a payback period of four years or less, would the equipment be purchased? 2a. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. 26. Would the equiprnent be purchased if the company's required rate of return is 16% ? Complete this question by entering your answers in the tabs below. Would the cquipment be purchased if the company's required rate of return is 16% Step by Step Solution
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