Bramble Inc. is considering modernizing its production facility by investing in new equipment and selling the old

equipment. The following information has been collected on this irvestment:

Depreciation is $$10,230$ per year for the old equipment. The straight$-$line depreciation method would be used for the

new equipment over an eight$-$year period with salvage value of $$4,600.$

$($a$)$

Your answer is correct.

Determine the cash payback period. $($lgnore income taxes.$)($Round answer to $3$ decimal places, e$.$g$-$

$15\mathrm{.}275.)$

Cash payback period

years

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$($b$)$

$$ Your answer is incorrect.

Calculate the annual rate of return. $($Round answer to $2$ decimal places, e$.$g$.15\mathrm{.}25\%.)$