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Swifty Growth Farms, a farming cooperative, is considering purchasing a tractor for $576,800. The machine has a 10-year life and an estimated salvage value of
Swifty Growth Farms, a farming cooperative, is considering purchasing a tractor for $576,800. The machine has a 10-year life and an estimated salvage value of $58,000. Dellivery costs and set-up charges will be $14,300 and $400, respectively. Swifty Growth uses straight-line depreciation and has a required rate of return of 9% Swifty Growth estimates that the tractor will be used five times a week with the average charge to the individual farmers of $400. Fuel. is $50 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: Cash payback period, (Round answer to 1 decimal places, es. 15.2.) Cash payback period vears eTextbook and Media Attempts: 0 of 2 used (b) The parts of this question must be completed in order. This part will be avaifable when you complete the part above
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