Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $245,000 and have a $49,000 salvage value in five years. The annual net income from the equipment is expected to be $29,400, and depreciation is $39,200 per year. Calculate Blue Marlin's annual rate of return and payback period for the equipment. (Do not round intermediate calculations. Round your Payback Period to 2 decimal places.) TAT 12 % Annual Rate of Return Payback Period Years

Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $245,000 and have a $49,000 salvage value in five years. The annual net income from the equipment is expected to be $29,400, and depreciation is $39,200 per year. Calculate Blue Marlin's annual rate of return and payback period for the equipment. (Do not round intermediate calculations. Round your Payback Period to 2 decimal places.) TAT 12 % Annual Rate of Return Payback Period Years

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 17EB: Caduceus Company is considering the purchase of a new piece of factory equipment that will cost...

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