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Question - Blue Spruce's Accounting Museum is exploring the purchase of a new building with a useful life of 19 years to use as its main gallery space. The building will cost $744,000. Once it has been purchased, the museum will terminate its current lease, which costs $62,100 per year. The new gallery will allow the museum to display more of its permanent collection, as well as to showcase traveling exhibits. The increased exhibit space, along with the new building's location, is expected to increase admissions revenue by $30,900 per year. Calculate the payback period for the proposed investment in the building. Assume that all cash flows occur evenly throughout the year.
If a project that you are considering has an Accounting DOL of 3, a fixed cost level of $30,000, and an EBIT of $20,000, its Cash Flow DOL will be
22566 Small Business Management and Accounting Assignment Help and Solutions, University of Technology Sydney-Australia.Create the chart of accounts.
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Babble Brook Farm is planning to purchase a new tractor. The initial cost is $530 000. What is the payback period for the new machine
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