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Question 42 of 44 < > View Policies Current Attempt in Progress Sarasota Growth Farms, a farming cooperative, is considering purchasing a tractor for
Question 42 of 44 < > View Policies Current Attempt in Progress Sarasota Growth Farms, a farming cooperative, is considering purchasing a tractor for $563,170. The machine has a 10-year life and an estimated salvage value of $51,000. Delivery costs and set-up charges will be $13,600 and $430, respectively. Sarasota Growth uses straight-line depreciation and has a required rate of return of 9%. Sarasota Growth estimates that the tractor will be used five times a week with the average charge to the individual farmers of $430. Fuel is $60 for each use of the tractor. The present value of an annuity of 1 for 10 years at 9% is 6.41766. Click here to view PV tables. For the new tractor, compute the (a) Your answer has been saved. See score details after the due date. Cash payback period. (Round answer to 1 decimal places, e.g. 15.2.) Cash payback period years (b) Attempts: 1 of 1 used
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