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Exercise 24-6 BSU Inc. wants to purchase a new machine for $27.500, excluding $1.500 of n o n costs. The machine was bought five years
Exercise 24-6 BSU Inc. wants to purchase a new machine for $27.500, excluding $1.500 of n o n costs. The machine was bought five years ago and had an expected economice of 10 years without savage value. This old machine now has a book value of $2,100, and SU Inc, expects to sell it for that amount. The new machine would decrease org y .500 economic life. The straight-line depreciation method would be used for the new machine for a year period with a salvage value Click here to view the factor table (For calculation purposes se decimal places as displayed in the factor the provided) Determine the cash payback period (Round cash payback period to 1 decimal place,.. 10.5.) Cash payback period years 10.) Determine the approximateternal rate ofretum (Round answer to decimales. Internal rate of return determine whether the new machine should be purchased As the company has a required rate of return of The investment be accepted Click if you would like to Show Work for this questioni Don Show Wor BBIYA Question Attempt of used
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