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Author Question: Keltner Enterprises is considering investing in a new packing machine. The new machine will provide ... (Read 72 times)

moore.cailinf

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Question 1

Johnson Whole Distributors is anticipating investing in equipment that cost $120,000. The equipment has an 8-year life and no salvage value. Johnson uses straight-line depreciation. The equipment has a payback period of 5 years. The accounting rate of return is closest to
◦ 5%.
◦ 6.25%.
◦ 7.5%.
◦ 7.8%.

Question 2

Keltner Enterprises is considering investing in a new packing machine.  The new machine will provide annual cash operating inflows of $12,300 for 5 years. The cost of the machine is $42,300 and it can be sold at the end of its 5-year useful life for $6,800. Keltner's required rate of return is 10%. What is the packing machine's payback period?
◦ 7.69 years
◦ 3.44 years
◦ 2.89 years
◦ 3.99 years


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Marked as best answer by moore.cailinf on Feb 5, 2023

koung719

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moore.cailinf

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Reply 2 on: Feb 5, 2023
Excellent


tkempin

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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