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8a 8b 8c A machine can be purchased for $50,000 and used for five years, yielding the following income. This incom computation includes annual depreciation
8a
8b
8c
A machine can be purchased for $50,000 and used for five years, yielding the following income. This incom computation includes annual depreciation expense of $10,000. Compute the machine's payback period. (Round payback period answer to 2 decimal places.) B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $456,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. (a) Compute the annual net cash flow. (b) Compute the payback perlod. (c) Compute the accounting rate of return for this equipment. Complete this question by entering your answers in the tabs below. Compute the annual net cash flow. B2B Company is considering the purchase of equipment that would allow the compary to add a new product to its ilne. The equipment costs $456,000 and has a 12 -year life and no salvage value. The expected annual income for each year from this equipment follows. (a) Compute the annual net cash flow. (b) Compute the payback perlod. (c) Compute the accounting rate of return for this equipment. Complete this question by entering your answers in the tabs below. Compute the payback period. B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $456,000 and has a 12 -year life and no salvage value. The expected annual Income for each year from thls equipment follows. (a) Compute the annual net cash flow. (b) Compute the payback perlod. (c) Compute the accounting rate of return for thls equipment. Complete this question by entering your answers in the tabs below. Compute the accounting rate of return for this equipmentStep by Step Solution
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