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Marigold Growth Farms, a farming cooperative, is considering purchasing a tractor for $556,080. The machine has a 10 -year life and an estimated salvage value

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image text in transcribedimage text in transcribed Marigold Growth Farms, a farming cooperative, is considering purchasing a tractor for $556,080. The machine has a 10 -year life and an estimated salvage value of $44,000. Delivery costs and set-up charges will be $12,900 and $420, respectively. Marigold Growth uses straight-line depreciation and has a required rate of return of 9%. Marigold Growth estimates that the tractor will be used five times a week with the average charge to the individual farmers of $420. 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 TABLE 1 Future Value of 1 TABLE 2 Future Value of an Annuity of 1 TABLE 3 Present Value of 1 TABLE 4 Present Value of an Annuity of 1

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