Question: Exercise 10-15A (Algo) Computing the payback period and unadjusted rate of return for the same investment opportunity LO 104 Stuart Rentals can purchase a van
Exercise 10-15A (Algo) Computing the payback period and unadjusted rate of return for the same investment opportunity LO 104 Stuart Rentals can purchase a van that costs $105,000, it has an expected useful hfe of three years and no salvage value. Stuart uses straight-ine depreciation. Expected revenue is $52,220 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 answer to 1 decimal place. (i.e.t .234 should be entered as 23.4).)
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