Zachary Rentals can purchase a van that costs $156,000; it has an expected useful life of...
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Zachary Rentals can purchase a van that costs $156,000; it has an expected useful life of four years and no salvage value. Zachary uses straight-line depreciation. Expected revenue is $64,272 per year. Assume that depreciation is the only expense associated with this investment. Required a. Determine the payback period. (Round your answer to 1 decimal place.) b. Determine the unadjusted rate of return based on the average cost of the investment. (Round your answer to 1 decimal place. (i.e., .234 should be entered as 23.4).) a. Payback period years b. Unadjusted rate of return % Zachary Rentals can purchase a van that costs $156,000; it has an expected useful life of four years and no salvage value. Zachary uses straight-line depreciation. Expected revenue is $64,272 per year. Assume that depreciation is the only expense associated with this investment. Required a. Determine the payback period. (Round your answer to 1 decimal place.) b. Determine the unadjusted rate of return based on the average cost of the investment. (Round your answer to 1 decimal place. (i.e., .234 should be entered as 23.4).) a. Payback period years b. Unadjusted rate of return %
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