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Question 4 of 5 75 Current Attempt in Progress Legend Service Center just purchased any automobile hoist for $37,300. The hoist has an 8-year life
Question 4 of 5 75 Current Attempt in Progress Legend Service Center just purchased any automobile hoist for $37,300. The hoist has an 8-year life and an estimated salvaje value of $3,600 Installation costs and freight charges were $3.000 and $900, respectively Legend users straight line depreciation The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable hihi mechanics to replace 5 extra mufflers per week. Each muffler sells for $73 installed. The cost of a muffier is $39, and the labor cost to Install a muffer is $14. (a) Compute the cash payback period for the new holst. Cash payback period Years (6) Compute the annual rate of return for the new hoist (Round answer to 2 decimal place as 10.52%) Annual rate of return
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