need correct and complete answer with steps and all work please answer in text Legend Service Center just purchased an automobile hoist for $27,400. The hoist has an 8-year life and an estimated salvage value of$3,700. Installation costs and freight charges were $4,300 and $800, respectively. Legend uses straight-line depreciation.* Your answer is incorrect.The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanicsto replace 5 extra mufflers per week. Each muffler sells for $74 installed. The cost of a muffler is $36, and the labor cost to install amuffler is $13.(a)Compute the cash payback period for the new hoist.Cash payback period(b)3.38Annual rate of returnyearsCompute the annual rate of return for the new hoist. (Round answer to 2 decimal places, e.g. 10.52%.)16.82 %

Payback period is the period required to recover initial investment of the project and does not…

The new hoist be used to replace murriers and tires on aut Legend estimate the new hoist will enable his to replace 5 extra mufflers per week. Each muffler sells for $74 installed. The cost of a muffler is $36, and the labor cost to install: muffler is $13. (a) Compute the cash payback period for the new hoist. Cash payback period (b) 3.38 Annual rate of return years Compute the annual rate of return for the new hoist. (Round answer to 2 decimal places, e.g. 10.52%.) 16.82 %

The new hoist be used to replace murriers and tires on aut Legend estimate the new hoist will enable his to replace 5 extra mufflers per week. Each muffler sells for $74 installed. The cost of a muffler is $36, and the labor cost to install: muffler is $13. (a) Compute the cash payback period for the new hoist. Cash payback period (b) 3.38 Annual rate of return years Compute the annual rate of return for the new hoist. (Round answer to 2 decimal places, e.g. 10.52%.) 16.82 %

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter11: Cash Flow Estimation And Risk Analysis

Section: Chapter Questions

Problem 10P: St. Johns River Shipyards welding machine is 15 years old, fully depreciated, and has no salvage...

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