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QUESTION 9 Abba, Inc is considering the purchase of some new equipment that costs $142,900. The new equipment is expected to increase revenues by $113,000 annually. Cash expenses are expected to be $49,500 and depreciation expense is $15,600. The payback on this equipment is years. Enter your answer as a whole number rounded to 2 decimal places.

QUESTION 9 Abba, Inc is considering the purchase of some new equipment that costs $142,900. The new equipment is expected to increase revenues by $113,000 annually. Cash expenses are expected to be $49,500 and depreciation expense is $15,600. The payback on this equipment is years. Enter your answer as a whole number rounded to 2 decimal places.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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QUESTION 9 Abba, Inc is considering the purchase of some new equipment that costs $142,900. The new equipment is expected to increase revenues by $113,000 annually. Cash expenses are expected to be $49,500 and depreciation expense is $15,600. The payback on this equipment is years. Enter your answer as a whole number rounded to 2 decimal places.
Transcribed Image Text:QUESTION 9 Abba, Inc is considering the purchase of some new equipment that costs $142,900. The new equipment is expected to increase revenues by $113,000 annually. Cash expenses are expected to be $49,500 and depreciation expense is $15,600. The payback on this equipment is years. Enter your answer as a whole number rounded to 2 decimal places.
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