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Lakeside, Inc is considering replacing old production equipment with state-of-the-art technology that will allow production cost savings of $10,000 per month. The new equipment will

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Lakeside, Inc is considering replacing old production equipment with state-of-the-art technology that will allow production cost savings of $10,000 per month. The new equipment will have a five year life and cost $450,000 with an estimated salvage value of $40,000. Lakeside's cost of capital is 9%. Required Calculate the payback period and the accounting rate of return for the new production equipment

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