News corporation is considering investing 65000 in

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News Corporation is considering investing $65,000 in equipment to produce a new product. The useful service life of the equipment is estimated to be ten years, with no salvage value. Straight-line depreciation is used. The company estimates that production and sale of the new product will increase net income by $6,500 per year. What is the payback period and expected rate of return on average investment for this equipment?

Reference no: EM13574321

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