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Info For Questsal #19,20,21 10 What is the traditional payback period for the new stamping machine? A. 2.00 years. B. 2.63 years. C. 2.75 years.
Info For Questsal #19,20,21 10 What is the traditional payback period for the new stamping machine? A. 2.00 years. B. 2.63 years. C. 2.75 years. D. 2.94 years. A company purchased-a new machine to stamp the company logo on its products. The cost of the machine was $250,000, and it has an estimated useful life of 5 years with an expected salvage value at the end of its useful life of $50,000.- The company uses the straight-line depreciation method. The new machine is expected to save $125,000 annually in operating costs. The company's tax rate is 40%, and it uses a 10% discount rate to evaluate capital expenditures. (20) What is the accounting rate of return based on the average investment in the new stamping machine? A. 20.4% 34.0% Present Value of an Present Ordinary Value of $1 Annuity of $1 1909 1909 ear G. 40.8% 1 D. 51.0% 1.736 826 1.751 2.487 683 3.170 5 621 3.791 20 What is the net present value (NPV) of the new stamping machine? A. $125,940 B. $200,000 C. $250,000 D. $375,940
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