question 2

Larry's Lawn Service needs to purchase a new lawnmower costing $8,476 to replace an old lawnmower that cannot be repaired. The new lawnmower is expected to have a useful life of 4 years, with no salvage value at the end of that period. Click here to view the factor table. (a) If Larry's required rate of return is 11%, what level of annual cash savings must Annual cash savings should be $ (b) If Larry's required rate of return is 14%, what level of annual cash savings must Annual cash savings should be $