beacon company is considering purchasing new equipment for 355 950 the equipment has 1103381

Beacon Company is considering purchasing new equipment for $355,950. The equipment has a 5-year useful life, and depreciation would be $71,190 (assuming straight-line depreciation and zero salvage value). The purchase of the equipment should increase net income by $41,800 each year for 5 years. (Round answers to one decimal place, e.g. 5.1.) (a) Compute the annual rate of return. %…………. (b) Compute the cash payback period. years…………

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Beacon Company is considering purchasing new equipment for $355,950. The equipment has a 5-year useful life, and depreciation would be $71,190 (assuming straight-line depreciation and zero salvage value). The purchase of the equipment should increase net income by $41,800 each year for 5 years. (Round answers to one decimal place, e.g. 5.1.)??(a) Compute the annual rate of return.??%………….??(b) Compute the cash payback period.??years…………

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