Cost Accumulated depreciation Remaining life Current salvage value Salvage value in 8 years Annual cash operating costs Old Equipment (a) Cash payback period (b) Depreciation is $10,050 per year for the old equipment. The straight-line depreciation method would be used for the new equipment over an eight-year period with salvage value of $4,800. $80,400 $40,500 8 years $10,280 $0 $35,800 e Textbook and Media New Equipment Determine the cash payback period. (Ignore income taxes.) (Round answer to 3 decimal places, e.g. 15.275.) Cost Estimated useful life Salvage value in 8 years Annual cash operating costs Annual rate of return $40,800 8 years $4,800 $29,600 years Calculate the annual rate of return. (Round answer to 2 decimal places, e.g. 15.25%) % Attempts: 1 of 3 used
Cost Accumulated depreciation Remaining life Current salvage value Salvage value in 8 years Annual cash operating costs Old Equipment (a) Cash payback period (b) Depreciation is $10,050 per year for the old equipment. The straight-line depreciation method would be used for the new equipment over an eight-year period with salvage value of $4,800. $80,400 $40,500 8 years $10,280 $0 $35,800 e Textbook and Media New Equipment Determine the cash payback period. (Ignore income taxes.) (Round answer to 3 decimal places, e.g. 15.275.) Cost Estimated useful life Salvage value in 8 years Annual cash operating costs Annual rate of return $40,800 8 years $4,800 $29,600 years Calculate the annual rate of return. (Round answer to 2 decimal places, e.g. 15.25%) % Attempts: 1 of 3 used
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 13PA: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value...
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