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Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $251,000 and have a $50,200 salvage value in five
Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $251,000 and have a $50,200 salvage value in five years. The annual net income from the equipment is expected to be $27,610, and depreciation is $40,160 per year. Calculate Blue Marlins annual rate of return and payback period for the equipment. (Do not round intermediate calculations. Round your Payback Period to 2 decimal places.)
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