Harwell Printing Co is considering the purchase of new electronic
Harwell Printing Co. is considering the purchase of new electronic printing equipment. It would allow Harwell to increase its net income by $45,000 per year. Other information about this pro-posed project follows:
Initial investment ..... $300,000
Useful life ........ 5 years
Salvage value ....... $100,000

Required:
Calculate and evaluate the following for Harwell:
1. Accounting rate of return.
2. Payback period.

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