Question
EE printing is in the evaluation process for the acquisition of a new computer system. The total depreciable base (cost plus installation) is $155,000. The
EE printing is in the evaluation process for the acquisition of a new computer system. The total depreciable base (cost plus installation) is $155,000.
The new equipment will increase Earnings before depreciation and taxes by $58,000 during years 1 to 3 and $32,000 during years 4 to 6.
EE marginal tax rate is 30% and Cost of Capital is 11%
Calculate the Payback Period
PRESENT YOUR ANSWER ROUNDED TO ZERO DECIMAL PLACES
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Simple Tools And Techniques For Enterprise Risk Management
Authors: Robert J. Chapman
1st Edition
1119989973, 978-1119989974
