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Chapter 11 question 12I'm confused by this earn.liberty edu%252Fwebapps%252Fportal%252 Citation Machine :.. Chapter 11 Homework Saved Help Save & Exit Submit Check my work 12

Chapter 11 question 12I'm confused by this

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earn.liberty edu%252Fwebapps%252Fportal%252 Citation Machine :.. Chapter 11 Homework Saved Help Save & Exit Submit Check my work 12 Heels, a shoe manufacturer, is evaluating the costs and benefits of new equipment that would custom fit each pair of athletic shoes. The customer would have his or her foot scanned by digital computer equipment, this information would be used to cut the raw materials to provide the customer a perfect fit. The new equipment costs $101,000 and is expected to generate an additional $40,000 in cash flows for five years. A bank will make a $101,000 loan to the company at a 12% Interest rate for this equipment's purchase 2 Compute the recovery time for both the payback period and break-even time. (PV of $1, FV of $1, PVA of $1, and EVA of $1) (Use points appropriate factor(s) from the tables provided.) eBook Complete this question by entering your answers in the tabs below. Print Payback Period Break even time Compute the recovery time for the payback period. Payback Period Choose Numerator: / Choose Denominator: Payback Period = Payback period Mc Graw Hill O Type here

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