ch10 group work help

Exercise 10-15A Computing the payback period and unadjusted rate of return for the same investment opportunity LO 10-4 Finch Rentals can purchase a van that costs $78,000; it has an expected useful life of three years and no salvage value. Finch uses straight-line depreciation. Expected revenue is $39,221 per year. Assume that depreciation is the only expense associated with this investment Required a. Determine the payback period. (Round your answer to 1 decimal place.) b. Determine the unadjusted rate of return based on the average cost of the investment. (Round your Inswer to 1 decimal place. (i.e.,.234 should be entered as 23.4).) a. Payback period b. Unadjusted rate of return 5.0 years 12.01%