Harwell Printing Co. is considering the purchase of new electronic printing equipment. It would allow...
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Accounting
Harwell Printing Co. is considering the purchase of new electronic printing equipment. It would allow Harwell to increase its net income by $61,088 per year. Other information about this proposed project follows:
Initial investment $ 332,000 Useful life 7 years Salvage value $ 94,000
Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Harwell. (Round your percentage answer to 1 decimal place.)
Accounting Rate of Return
%
2. Calculate the payback period for Harwell. (Round your answer to 2 decimal places.)
Payback Period
Years
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