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Exercise 12-9 Legend Service Center just purchased an automobile holst for $36,800. The holst has an 8-year life and an estimated salvage value of $3,800.
Exercise 12-9 Legend Service Center just purchased an automobile holst for $36,800. The holst has an 8-year life and an estimated salvage value of $3,800. Installation costs and freight charges were $4,100 and $700, respectively. Legend uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace Sextra mufflers per week. Each muffler sells for $72 installed. The cost of a muller is $38, and the labor cost to install a muller is $14. (a) Compute the cash payback period for the new hoist. Cash payback period Compute the annual rate of return for the new hoist. (Round answer to 2 decimal places, e.g. 10.529.) Annual rate of return Click If you would like to show Work for this questioni Open Show Work
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