Calculate blue marlins annual rate of return and payback

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1) A project has estimated annual net cash flows of $63,000 and is estimated to cost $352,800. What is the payback period?

(round to 2 decimal places)

2. Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $244,000 and have a $48,800 salvage value in five years. The annual net income from the equipment is expected to be $29,280, and depreciation is $39,040 per year.

Calculate Blue Marlin's annual rate of return and payback period for the equipment. (Round your Payback Period to 2 decimal places.)

Reference no: EM13571485

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