Determine how many years the equipment

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Reference no: EM131212885

Tilly's Travel Service has made an investment in certain equipment that cost the company $353,616. The equipment is expected to generate cash inflows of $48,000 each year.

Required:

1. Use your financial calculator or excel to determine how many years the equipment will have to be used in order to provide the company with a 10% return on its investment.

2. Use Excel or your financial calculator to compute the montly payment for a car costing $26,000. Assume that you will finance it for 6 years at an interest rate of 6%. (Round your answer to two decimal places.)

Reference no: EM131212885

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