Sarasotas Lawn Service needs to purchase a new lawnmower costing $8,686 to replace an old lawnmower that cannot be repaired. The new lawnmower is expected to have a useful life of 7 years, with no salvage value at the end of that period. Click here to view the factor table.

(a) If Sarasotas required rate of return is 10%, what level of annual cash savings must the lawnmower generate to be considered an acceptable investment under the net present value method? (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.)

Annual cash savings should be $enter the annual cash savings in dollars

(b) If Sarasotas required rate of return is 16%, what level of annual cash savings must the lawnmower generate to be considered an acceptable investment under the net present value method? (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.)

Annual cash savings should be $enter the annual cash savings in dollars

Question

Sarasotas Lawn Service needs to purchase a new lawnmower costing $8,686 to replace an old lawnmower that cannot be repaired. The new lawnmower is expected to have a useful life of 7 years, with no salvage value at the end of that period. Click here to view the factor table.

(a)

If Sarasotas required rate of return is 10%, what level of annual cash savings must the lawnmower generate to be considered an acceptable investment under the net present value method? (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.)

Annual cash savings should be

$enter the annual cash savings in dollars

(b)

If Sarasotas required rate of return is 16%, what level of annual cash savings must the lawnmower generate to be considered an acceptable investment under the net present value method? (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.)

Annual cash savings should be

$enter the annual cash savings in dollars

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Sarasotas Lawn Service needs to purchase a new lawnmower costing $8,686 to replace an old lawnmower that cannot be repaired. The new lawnmower is expected

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