Adams Rentals can purchase a van that costs $84,000; it has an expected useful life...
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Accounting
Adams Rentals can purchase a van that costs $84,000; it has an expected useful life of four years and no salvage value. Adams uses straight-line depreciation. Expected revenue is $35,028 per year. Assume that depreciation is the only expense associated with this investment.
Required
Determine the payback period.(Round your answer to 1 decimal place.)
Determine the unadjusted rate of return based on the average cost of the investment.(Round your answer to 1 decimal place. (i.e., .234 should be entered as 23.4).)
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