Wolverine Corp. 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 $50,100. The equipment will have an initial cost of $601,000 and have a 8-year life. The equipment has no salvage value. The hurdle rate is 10%. Ignore income taxes.

(Future Value of $1,Present Value of $1,Future Value Annuity of $1,Present Value Annuityof $1.)(Use appropriate factor from the PV tables.)

a.What is the accounting rate of return?(Round your answer to 2 decimal places.)

b.What is the payback period?(Round your answer to 1 decimal place.)

c.What is the net present value?(Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.)

d.What would the net present value be with a 14% hurdle rate?(Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Q ACCT 2210 CH 11 #2 X 3 Connect X table11_4a.JPG (667x8 x C Get Homework Help V X C Part Ill - Problems - Jc X Course Hero X + X -> C A ezto-cf-media.mheducation.com/Media/Connect_Production/bne/accounting/Whitecotton_4e/table11_4a.JPG EX G TABLE 11.4A Present Value of Annuity of $1 Periods* 1 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 0.9804 0.9709 0.9639 0.9615 0.9592 0.9524 0.9434 0.9346 0.9259 2 1.9416 19135 1.8929 1.8861 1.8794 1.8594 1.8334 1.8080 1.7833 3 2.8839 2.8286 2.7883 2.7751 2.7620 2.7232 2.6730 2.6243 2.5771 4 3.8077 3.7171 3.6514 3.6299 3.6086 3.5460 3.4651 3.3872 3.3121 5 4.7135 4.5797 4.4833 4.4518 4.4207 4.3295 4.2124 4.1002 3.9927 6 5.6014 5.4172 5.2851 5.2421 5.1997 5.0757 4.9173 4.7665 4.6229 7 6.4720 6.2303 6.0579 6 6.0021 5.9470 5.7864 5.5824 5.3893 5.2064 8 7.3255 7.0197 6.8028 6.7327 6.6638 6.4632 6.2098 5.9713 5.7466 9 8.1622 7.7861 7.5208 7.4353 7.3513 71078 6.8017 6.5152 6.2469 10 8.9826 8.5302 8.2128 8.1109 8.0109 7.7217 7.3601 7.0236 6.7101 20 16.3514 14.8775 13.8962 13.5903 13.2944 12.4622 11.4699 10.5940 9.8181 Periods* 9% 10% 11% 12% 13% 14% 15% 20% 25% 0.9174 0.9091 0.9009 0 0.8929 0.8550 0.8772 0.8696 0.8333 0.8000 2 1.7591 1.7355 1.7125 1.6901 1.6681 1.6467 1.6257 1.5278 1.4400 3 2.5313 2.4869 2.4437 2.4018 2.3612 2.3216 2.2832 2.1065 1.9520 4 3.2397 3.1699 3.1024 3.0373 2.9745 2.9137 2.8550 2.5887 2.3616 5 3.8897 3.7908 3.6959 9 3.6048 3.5172 3.4331 3.3522 2.9906 2.6893 6 4.4859 4.3553 4.2305 4.1114 3.9975 3.8887 3.7845 3.3255 2.9514 7 5.0330 4.8684 4.7122 4.5638 4.4226 4.2883 4.1604 3.6046 3.1611 8 5.5348 5.3349 5.1461 4.9676 4.7988 4.6389 4.4873 3.8372 3.3289 9 5.9952 5.7590 5.5370 5.3282 5.1317 4.9464 4.7716 4.0310 3.4631 10 6.4177 6.1446 5.8892 5.6502 5.4262 5.2161 5.0188 4.1925 3.5705 20 9.1285 8.5136 7.9633 7.4694 7.0248 6.6231 6.2593 4.8696 3.9539 "There is one payment each period. e 9 e 24 23 12:54 2020-08-13