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Grouper Growth Farms, a farming cooperative, is considering purchasing a tractor for $559,050. The machine has a 10 -year life and an estimated salvage value
Grouper Growth Farms, a farming cooperative, is considering purchasing a tractor for $559,050. The machine has a 10 -year life and an estimated salvage value of $43,000. Delivery costs and set-up charges will be $12,800 and $410, respectively. Grouper Growth uses straight-line depreciation and has a required rate of return of 9%. Grouper Growth estimates that the tractor will be used five times a week with the average charge to the individual farmers of $410. Fuel is $55 for each use of the tractor. The present value of an annuity of 1 for 10 years at 9% is 6.41766. Click here to view PV tables. For the new tractor, compute the: (a) Cash payback period. (Round answer to 1 decimal places, e.g. 15.2.) Cash payback period years Attempts: 0 of 1 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above
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