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our company is planning to purchase a new log splitter for its lawn and garden business. The new splitter has an initial investment of $231,000. It is expected to generate $30,000 of nnual cash flows, provide incremental cash revenues of $133,987, and incur incremental cash expenses of $70,000 annually. What is the payback period and accounting rate of return (ARR)? Round your answers to 1 decimal place. ayback period RR years %

our company is planning to purchase a new log splitter for its lawn and garden business. The new splitter has an initial investment of $231,000. It is expected to generate $30,000 of nnual cash flows, provide incremental cash revenues of $133,987, and incur incremental cash expenses of $70,000 annually. What is the payback period and accounting rate of return (ARR)? Round your answers to 1 decimal place. ayback period RR years %

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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CH11 Q3

Your company is planning to purchase a new log splitter for its lawn and garden business. The new splitter has an initial investment of $231,000. It is expected to generate $30,000 of annual cash flows, provide incremental cash revenues of $133,987, and incur incremental cash expenses of $70,000 annually. What is the payback period and accounting rate of return (ARR)? Round your answers to 1 decimal place. Payback period ARR years %
Transcribed Image Text:Your company is planning to purchase a new log splitter for its lawn and garden business. The new splitter has an initial investment of $231,000. It is expected to generate $30,000 of annual cash flows, provide incremental cash revenues of $133,987, and incur incremental cash expenses of $70,000 annually. What is the payback period and accounting rate of return (ARR)? Round your answers to 1 decimal place. Payback period ARR years %
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