Question
XYZ Company is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in
XYZ 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 $3,000. The equipment will have an initial cost of $10,000 and have a 5-year life. There is no salvage value of the equipment.
What is the accounting rate of return?
What is the payback period?
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Research Methods For Business Students
Authors: Mark N.K. Saunders, Philip Lewis, Adrian Thornhill
7th Edition
1292016620, 9781292016627
