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only 4 listed questions need to be answered Show Attempt History Current Attempt in Progress Vaughn Inc. is considering modernizing its production facility by investing
only 4 listed questions need to be answered
Show Attempt History Current Attempt in Progress Vaughn Inc. is considering modernizing its production facility by investing in new equipment and selling the old equipment. The following information has been collected on this investment: Old Equipment New Equipment Cost $81.440 Cost $38,600 $41.500 Estimated useful life 8 years 8 years $4,600 Accumulated depreciation Remaining life Current salvage value Salvage value in 8 years Annual cash operating costs Salvage value in 8 years Annual cash operating costs $10,670 $29.700 SO $35,400 Depreciation is $10,180 per year for the old equipment. The straight-line depreciation method would be used for the new equipment over an eight-year period with salvage value of $4,600 (a) Determine the CASH PAYBACK PERIDO (Ignore icon box ch calculate ANNUAL RATE OF RETURN Calculate the net present value assuming 15 / rate of conclusion whether company should equipment. (d) State your new purchase Step by Step Solution
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