M11-5 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2] Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $249,000 and have a $49,800 salvage value in five years. The annual net income from the equipment is expected to be $29,880, and depreciation is $39,840 per year. Required: Calculate Blue Marlin's accounting rate of return and payback period for the equipment. Note: Do not round intermediate calculations. Round your Payback Period to 2 decimal places. Accounting Rate of Retur Payback Period % Years
M11-5 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2] Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $249,000 and have a $49,800 salvage value in five years. The annual net income from the equipment is expected to be $29,880, and depreciation is $39,840 per year. Required: Calculate Blue Marlin's accounting rate of return and payback period for the equipment. Note: Do not round intermediate calculations. Round your Payback Period to 2 decimal places. Accounting Rate of Retur Payback Period % Years
Chapter1: Financial Statements And Business Decisions
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![M11-5 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2]
Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $249,000 and have a $49,800
salvage value in five years. The annual net income from the equipment is expected to be $29,880, and depreciation is $39,840
per year.
Required:
Calculate Blue Marlin's accounting rate of return and payback period for the equipment.
Note: Do not round intermediate calculations. Round your Payback Period to 2 decimal places.
Accounting Rate of Retur
Payback Period
%
Years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2bfa86f0-9061-4678-a412-a0eb0412be84%2F7cfaadb0-5f72-4637-b1dd-eec4a0182709%2F5cr7flw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:M11-5 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2]
Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $249,000 and have a $49,800
salvage value in five years. The annual net income from the equipment is expected to be $29,880, and depreciation is $39,840
per year.
Required:
Calculate Blue Marlin's accounting rate of return and payback period for the equipment.
Note: Do not round intermediate calculations. Round your Payback Period to 2 decimal places.
Accounting Rate of Retur
Payback Period
%
Years
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