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ces A piece of labor-saving equipment has just come onto the market that Mitsul Electronics, Limited, could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: Purchase cost of the equipment Annual cost savings that will be provided by the equipment. Life of the equipment $ 378,000 $ 70,000 Required: 1a. Compute the payback period for the equipment. 1b. If the company requires a payback period of four years or less, would the equipment be purchased? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Compute the payback period for the equipment. Note: Round your answer to 1 decimal place. Payback Period Years 12 years Req1A Req 1B >

ces A piece of labor-saving equipment has just come onto the market that Mitsul Electronics, Limited, could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: Purchase cost of the equipment Annual cost savings that will be provided by the equipment. Life of the equipment $ 378,000 $ 70,000 Required: 1a. Compute the payback period for the equipment. 1b. If the company requires a payback period of four years or less, would the equipment be purchased? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Compute the payback period for the equipment. Note: Round your answer to 1 decimal place. Payback Period Years 12 years Req1A Req 1B >

FINANCIAL ACCOUNTING
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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ces A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Limited, could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: Purchase cost of the equipment Annual cost savings that will be provided by the equipment. Life of the equipment Required: 1a. Compute the payback period for the equipment. 1b. If the company requires a payback period of four years or less, would the equipment be purchased? Complete this question by entering your answers in the tabs below. Req 18 $ 378,000 $ 70,000 12 years Reg 1A Compute the payback period for the equipment. Note: Round your answer to 1 decimal place. Payback Period: Years Reg 1A Req 1B >
Transcribed Image Text:ces A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Limited, could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: Purchase cost of the equipment Annual cost savings that will be provided by the equipment. Life of the equipment Required: 1a. Compute the payback period for the equipment. 1b. If the company requires a payback period of four years or less, would the equipment be purchased? Complete this question by entering your answers in the tabs below. Req 18 $ 378,000 $ 70,000 12 years Reg 1A Compute the payback period for the equipment. Note: Round your answer to 1 decimal place. Payback Period: Years Reg 1A Req 1B >
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