question 13

Arvada Co. is corisidering the purchase of equipment that would allow the company to add a new product to its line. The equipmetnt is: expected to cost $240,000 with a 12 -year life and no salvage value. It will be depreciated on a straight-line basis. The company cxpects to sell 96.000 units of the equipment's product each year. The expected annual incorne related to this equipment follows 1. Compute the payback period. 2. Compute the accounting rate of return for this equipment. Complete this question by entering your answers in the tabs below. Compute the payback period. Complete this question by entering your answers in the tabs below. Compute the accounting rate of return for this equipment