Exercise 12-13 Payback Period and Simple Rate of Return Computations [LO12-1, LO12-6]A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce costs in one of itsplants in Japan. Relevant data relating to the equipment follow:Purchase cost of the equipmentAnnual cost savings that will beprovided by the equipmentLife of the equipment$432,000$ 90,00012 yearsRequired:la. 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?2a. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life.2b. Would the equipment be purchased if the company's required rate of return is 14%?Complete this question by entering your answers in the tabs below.Req 1AReq 18Req 2AReg 2BCompute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life.(Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.)Simple rate of return< Reg 1BRea 2B>< Prey4 of 6Next >10stvMacBook Air80DIDDF1F2F3F4F5F6F9F10F11@#$&*134QWERY[AH.JKCVNく?Command.. .この* COコ SavedExercise 12-13 Payback Period and Simple Rate of Return Computations [LO12-1, LO12-6]A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce costs in one of itsplants in Japan. Relevant data relating to the equipment follow:$432,000Purchase cost of the equipmentAnnual cost savings that will beprovided by the equipmentLife of the equipment$ 90,00012 yearscesRequired: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?2a. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life.2b. Would the equipment be purchased if the company's required rate of return is 14%?Complete this question by entering your answers in the tabs below.Reg 1AReq 1BReg 2AReq 2BCompute the payback period for the equipment. (Round your answer to 1 decimal place.)Payback periodYearsReq 1AReq 1B >Graw< Prev.4 of 6Next >10tvMacBook Air80888DIDDF2F4F5F6F7FBF9F1011@#3$&*一1467QWEYSDGHJKC.M>B>

Exercise 12-13 Payback Period and Simple Rate of Return Computations [LO12-1, LO12-6] A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Ltd., 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 $432,000 $ 90,000 12 years 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? 2a. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. 2b. Would the equipment be purchased if the company's required rate of return is 14%? Complete this question by entering your answers in the tabs below. Req 1A Reg 18 Req 2A Req 28 Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.) Simple rate of retum

Exercise 12-13 Payback Period and Simple Rate of Return Computations [LO12-1, LO12-6] A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Ltd., 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 $432,000 $ 90,000 12 years 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? 2a. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. 2b. Would the equipment be purchased if the company's required rate of return is 14%? Complete this question by entering your answers in the tabs below. Req 1A Reg 18 Req 2A Req 28 Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.) Simple rate of retum

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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