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Tucker company is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase
Tucker company is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income of $80,000. The equipment will have an initial cost of $200,000 and have a 10-year is There is no salvage value of the equipment. The hurdle rale is 20% Ignore income taxes What is the accounting rate of retu 20% 40% 20% 50% QUESTION 28 Refer to Tucker company What is the payback period? O 25 years 03 year A years 2 years QUESTION 29 Raven Company is considering the purchase of a new piece of equipment. The equipment costs $230,000, and will have a salvage value of $10,000 after eight years. Using the new piece of equipment wil increase Raven's annual cash flows by $50,000 Raven has a hundle rate of 15% (The present value annuity factor where interest rate is 15% and 8 years is 4.4673; the present value facker where interest rate is 15% and 8 years is 0.3260) QUESTION 30 Refer to Haven Company What is the present value of the salvage value?
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