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Heels, a shoe manufacturer, is evaluating the costs and benets of new equipment that would custom t each pair of athletic shoes. The customer would

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Heels, a shoe manufacturer, is evaluating the costs and benets of new equipment that would custom t each pair of athletic shoes. The customer would have his or her foot scanned by digital computer equipment; this information would be used to cut the raw materials to provide the customer a perfect t. The new equipment costs $111,000 and is expected to generate an additional $44,000 in cash flows for ve years. A bank will make a $111,000 loan to the company at a 12% interest rate for this equipment's purchase. Compute the recovery time for both the payback period and breakeven time. [PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor{s| from the tables provided.) Complete this question by entering your answers in the tabs below. Break even Payback Penod time Compute the recovery time for the paybad Annual net cash ow Average accounts receivable, net Average total assets Cost of goods sold Cost of investment Current assets Current liabilities Interest expense Net sales11! E Compute the recovery time for the breakeven time. (Cumulative net cash outows must be entered with a minus Sign. Round your Breakeven time answer to 1 decimal place.) s mom :

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