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Exercise 24-9 Your answer is partially correct. Try again. Legend Service Center just purchased an automobile hoist for $34,600. The hoist has an 8-year life
Exercise 24-9 Your answer is partially correct. Try again. Legend Service Center just purchased an automobile hoist for $34,600. The hoist has an 8-year life and an estimated salvage value of $3,730. Installation costs and freight charges were $3,430 and $880, respectively. Legend uses straight-line depreciation. The new hoist will be used to replace muffiers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace 7 extra mufflers per week. Each muffler sells for $75 installed. The cost of a muffler is $39, and the labor cost to install a muffler is $14. Compute the cash payback period for the new hoist. (Round answer to 2 decimal places, e.g. 10.50) Cash payback period 4.86 years Compute the annual rate of return for the new hoist. (Round answer to 1 decimal place, e.g. 10.5.,) Annual rate of return 9.3
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