Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started