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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
Question 1 O out of 0.2 points Warren Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $38,700. The equipment will have an initial cost of $75,200 and have a 10 year life and no salvage value of the equipment What is the payback period? Round your answer 2 decimals Question 2 O out of 0.2 points 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 retum 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 Question 3 O out of 0.2 points Parker, Inc purchased new equipment for $58,700. 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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