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Business, 29.05.2020 17:00 victoriahuntley12148

Legend Service Center just purchased an automobile hoist for $37,300. The hoist has an 8-year life and an estimated salvage value of $3,800. Installation costs and freight charges were $3,400 and $900, 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 $74 installed. The cost of a muffler is $40, and the labor cost to install a muffler is $14.(a) Compute the cash payback period for the new hoist.(b) Compute the annual rate of return for the new hoist. (Round answer to 2 decimal places, e. g. 10.52%.)

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Legend Service Center just purchased an automobile hoist for $37,300. The hoist has an 8-year life a...
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