Question: B2B Co Required 1 and 2 can someone please help! B2B Co. is considering the purchase of equipment that would allow the company to add
B2B Co Required 1 and 2 can someone please help!
B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $456,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 182,400 units of the equipment's product each year. The expected annual income related to this equipment follows Sales Costs $ 285, 000 Materials, labor, and overhead (except depreciation on new equipment) 152,000 38,000 28,500 218,500 66,500 19,950 $46,550 Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (30%) Net income 1. Compute the payback period 2. Compute the accounting rate of return for this equipment. Complete this question by entering your answers in the tabs below Required 1Required 2 Compute the payback period Payback Period Choose Numerator: Choose Denominator:Payback Period k period Required 1 Required 2>
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