Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $107,868 per year. Other information about this proposed project follows: $521,100 Initial investment Useful life Salvage value 10 years $ 52,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. (Round your percentage answer to 2 decimal places.) 2. Calculate the payback period for Bartlett (Round your answer to 2 decimal places.) 1. Accounting Rate of Return 2. Payback Period years
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- Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $96,579 per year. Other information about this proposed project follows Initial investment $468,810 9 years Selvage value $ 47,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett Note: Round your percentage answer to 2 decimal places. 2. Calculate the payback period for Bartlett Note: Round your answer to 2 decimal places. 1. Accounting Rate of Retu 2. Payback Period yearsBartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $98,389 per year. Other information about this proposed project follows: Initial investment $461,920 Useful life Salvage value 9 years $40,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. Note: Round your percentage answer to 2 decimal places. 2. Calculate the payback period for Bartlett. Note: Round your answer to 2 decimal places. Answer is complete but not entirely correct. 20.52 X % 4.90 x years 1. Accounting Rate of Return 2. Payback PeriodBartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $106,439 per year. Other information about this proposed project follows: Initial investment $ 514,200 Useful life 10 years Salvage value $ 45,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. Note: Round your percentage answer to 2 decimal places. 2. Calculate the payback period for Bartlett. Note: Round your answer to 2 decimal places. 1. Accounting Rate of Return 2. Payback Period % years
- Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $113,216 per year. Other information about this proposed project follows: Initial investment $ 524,150 Useful life 10 years Salvage value $ 55,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. (Round your percentage answer to 2 decimal places.) 2. Calculate the payback period for Bartlett. (Round your answer to 2 decimal places.)Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 1imos) $ 840,000 Useful life: 10 years Salvage value $ 120,000 Annual net income generated LLT's cost of capital $ 70,560 14% Assume straight line depreciation method is used. Required: Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return. 2. Payback period. 3. Net present value. 4. Without making any calculations, determine whether the IRR is more or less than 14%. Complete this question by entering your answers in the tabs below.Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 limos) Useful life. Salvage value Annual net income generated. LLT's cost of capital $1,800,000 $ 140,000 180,000 $ 15% 1. Accounting rate of return. 2. Payback period. 10 years Assume straight line depreciation method is used. Required: Help LLT evaluate this project by calculating each of the following: 3. Net present value 4. Without making any calculations, determine whether the IRR is more or less than 15% Complete this question by entering your answers in the tabs below. Required 4 Required 1 Required 2 Required 3 Calculate accounting rate of return. (Round your answer to 1 decimal place.) Accounting Rate of Return
- Harwell Printing Co. is considering the purchase of new electronic printing equipment. It would allow Harwell to increase its net income by $52,734 per year. Other information about this proposed project follows: Initial investment $ 282,000 Useful life 5 years Salvage value $ 97,000 Assume straight line depreciation method is used. Required:1. Calculate the accounting rate of return for Harwell. (Round your percentage answer to 1 decimal place.) 2. Calculate the payback period for Harwell. (Round your answer to 2 decimal places.)Linda’s Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 limos) $ 1,080,000 Useful life 10 years Salvage value $ 120,000 Annual net income generated 95,040 LLT’s cost of capital 15 % Assume straight line depreciation method is used. Required:Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return. (Round your percentage answer to 1 decimal place.) 2. Payback period. (Round your answer to 2 decimal places.) 3. Net present value. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Cash Outflows and negative amounts should be indicated by a minus sign. Round your "Present Values" to the nearest whole dollar amount.)Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $185,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $40,536. Click here to view PV table.What is its approximate internal rate of return? (Round answer to 0 decimal place, e.g. 13%.)
- Linda’s Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 limos) $600,000 Useful life 8years Salvage value $100,000 Annual net income generated 48,000 LLT’s cost of capital 12% Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return. 2. Payback period. 3. Net present value. (photo answer chart) 4. Without making any calculations, determine whether the IRR is more or less than 12%.Required Information [The following information applies to the questions displayed below.] Project A requires a $365,000 initial investment for new machinery with a five-year life and a salvage value of $42,000. The company uses straight-line depreciation. Project A is expected to yield annual net income of $25,300 per year for the next five years. Compute Project A's accounting rate of return. Choose Numerator: Accounting Rate of Return I Choose Denominator: = Accounting Rate of Return Accounting rate of returnLinda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 limos) Useful life Salvage value Annual net income generated LLT's cost of capital $1,140,000 $ 130,000 $ 101,460. 14% 1. Accounting rate of return. 2. Payback period. 10 years Assume straight line depreciation method is used. Required: Help LLT evaluate this project by calculating each of the following: 3. Net present value. 4. Without making any calculations, determine whether the IRR is more or less than 14%.