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 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Rr.23.
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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