AutoSave OFF APvc ... AP20 ACC 215 Chapter Eleven Exercises Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Calieri (Bady) v 12 v AA X G ab Wrap Text v General . Insert v AY : v Paste 1 I U U = = = Y Merge & Center $ % Delete w Format Y Conditional Farret Cell Formatting as Table Styles Sort & Find & Select Filter Analyze Data Sensitivity G12 fx A C D D E F G H T K L M N 0 P Q F B Name: Section: 1 2 3 4 Cells highlighted in green contain a drop-down arrow; select information from list. In the cells highlighted in grey, enter the appropiate amount in those cells. When the correct amount is entered, the cell will change color. Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 per year after straight-line depreciation. 5 6 7 8 9 10 11 12 13 14 15 16 2 17 18 19 20 21 22 23 24 25 26 27 28 Payback Period Choose Denominator: Choose Numerator: 1 / / / Payback Period Payback Period years years a. b. OS 11-13 Exercise 11-5 Exercise 11-6 Exercise 11-7 + Ready , + 150% %