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Carla Vista Service Center just purchased an automobile hoist for $ 3 2 , 3 0 0 . The hoist has an 8 - year

Carla Vista Service Center just purchased an automobile hoist for $32,300. The hoist has an 8-year life and an estimated salvage value
of $3,600. Installation costs and freight charges were $3,400 and $700, respectively. Carla Vista uses straight-line depreciation.
The new hoist will be used to replace mufflers and tires on automobiles. Carla Vista estimates that the new hoist will enable its
mechanics to replace 5 extra mufflers per week. Each muffler sells for $75 installed. The cost of a muffler is $41, and the labor cost to
install a muffler is $14.
(a)
Compute the cash payback period for the new hoist.
Cash payback period
years
(b)
Compute the annual rate of return for the new hoist. (Round answer to 2 decimal places, e.g.10.52%.)
Annual rate of return
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