Question: ALL question please answer only Robertson Hardware is adding a new product line that will require an investment of $1,418,000. Managers estimate that this investment


Robertson Hardware is adding a new product line that will require an investment of $1,418,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $330,000 the first year, $280,000 the second year, and $260,000 each year thereafter for eight years. Assume the project has no residual value. Compute the ARR for the investment. Round to two places. Select the formula, then enter the amounts to calculate the ARR (accounting rate of return) for the new product line. (Round ARR to the nearest hundredth percent [two decimal places]. X.XX%.) Robinson Hardware is adding a new product line that will require an investment of $1,476,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $320,000 the first year, $300,000 the second year, and $250,000 each year thereafter for eight years. Compute the payback period. Round to one decimal place. White Co. is considering acquiring a manufacturing plant. The purchase price is $1,150,000. The owners belleve the plant will generate net cash inflows of $329,000 annually. It will have to be replaced in seven years. Use the payback method to determine whether White should purchase this plant. Round to one decimal place. Select the formula, then enter the amounts to calculate the payback period for the plant. (Round payback to one decimal place, X.X.)
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