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Question 32 (5 points) Kramer Office Supplies has old equipment that is fully depreciated but has a current salvage value of $10,000. The company wants
Question 32 (5 points) Kramer Office Supplies has old equipment that is fully depreciated but has a current salvage value of $10,000. The company wants to purchase new equipment that costs $80,000 and have a 5-year useful life and zero salvage value. Expected changes in annual revenues and expenses if the new equipment is purchased are: $65,000 Increased revenues Increased expenses: Salary of additional operator Supplies Depreciation Maintenance Increased net income $20,000 9,000 15,000 4,000 48,000 $17,000 Required: Calculate the payback period on the new equipment
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