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Abba, Inc is considering the purchase of some new equipment that costs $142,900. The new equipment is expected to increase revenues by $113,000 annually. Cash
- Abba, Inc is considering the purchase of some new equipment that costs $142,900. The new equipment is expected to increase revenues by $113,000 annually. Cash expenses are expected to be $49,500 and depreciation expense is $15,600. The accounting rate of return of the equipment is ___%
Enter your answer as a whole number rounded to 2 decimal places. If your calculation is .1234, answer as 12.34
- Parker, Inc purchased new equipment for $56,700. The new equipment would save on operating costs over the next 5 years as follows: $20,100 in year 1; $21,100 in year 2; $24,500 in year 3; $11,500 in year 4; and $13,900 in year 5. The payback period for the new equipment is ______ years. Enter your answer rounded to 2 decimals
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