Midway Printing Co. is considering the purchase of new electronic printing equipment. It would allow Midway to increase its net income by \($60,000\) per year. Other information about this proposed project follows:

Required:

Calculate and evaluate the following for Midway:

1. Accounting rate of return.

2. Payback period.

Transcribed Image Text:

Initial investment Useful life Salvage value $300,000 5 years $100,000