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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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