Question: Blue Marlin Company is considering the purchase of new equipment

Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost
$250,000 and have a $50,000 salvage value in five years. The annual net income from the equipment is expected to be $25,000, and depreciation is $40,000 per year. Calculate and evaluate Blue Marlin’s annual rate of return and payback period for the equipment.


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  • CreatedFebruary 27, 2015
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