Legend Service Center just purchased an automobile hoist for $32,400. The hoist has an 8-year life and an estimated salvage value of $3,000. Installation costs and freight charges were $3,300 and $700, respectively. Legend uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace 5 extra mufflers per week. Each muffler sells for $72 installed. The cost of a muffler is $36, and the labor cost to install a muffler is $16. (a) Compute the cash payback period for the new hoist. (Round answer to 2 decimal places, e. g. 10.50.) (b) Compute the annual rate of return for the new hoist. (Round answer to 1 decimal place, e. g. 10.5.)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Legend Service Center just purchased an automobile hoist for $32,400. The hoist has an 8-year life and an estimated salvage value of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
According to the oil company BP, in 2010, the United States used 19,148,000 barrels of oil a day, and worldwide around 87,382,000 barrels of oil per day were used. 1 This includes oil used for (among other things) fuel and manufacturing.
Answers (1)
Presented below is information related to equipment owned by Porto Company on December 31, 2017. Cost $5,600,000 Accumulated depreciation to date 640,000 Expected future net cash flows 4,000,000 Fair value 2,720,000 Assume that Porto will continue
Answers (1)
Beth wants a job in fashion where she can be creative. It is important to her that she be paid well, but it is more important to her to have free time to spend with her friends and family.
Answers (1)
The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed $550,000 in the common stock account and $4.7 million in the additional paid-in sur + account. The 2015 balance sheet showed $590,000 and $5.
Answers (1)
Suppose the government imposes regulations that reduce the amount of pollution in the air. In four or more sentences, define incentive, explain the government's incentive for this regulation and how effective this process is.
Answers (1)
New Questions in Business
Suppose that today, the current yield for a corporate bond is 4.3%. If the market price goes up by 11% tomorrow, compute the current yield after the increase.
Answers (1)
Determine the future amount if $240,000 is to be received 5 years from today, at 10 percent annual interest.
Answers (1)
Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine's useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value.
Answers (1)
Tirri Corporation has provided the following information: Cost per UnitCost per Period Direct materials$7.35 Direct labor$3.55 Variable manufacturing overhead$1.40 Fixed manufacturing overhead $24,100 Sales commissions$1.
Answers (1)
A what type of budget is a type of financial report that scrutinizes the inflow and outflow of money in a given financial year
Answers (1)