Carla Vista Unlimited is considering purchasing an additional delivery truck that will have a seven-year useful life. The new truck will cost $44,900. Cost savings with this truck are expected to be $13,700 for the first two years, $9,500 for the following two years, and $5,400 for the last three years of the truck's useful life. What is the payback period for this project? (Round answer to 2 decimal places, e.g. 52.75.) Payback period years What is the discounted payback period for this project with a discount rate of 10 percent? (Round answer to 2 decimal places, e.g. 52.75.) Discounted payback period years

Carla Vista Unlimited is considering purchasing an additional delivery truck that will have a seven-year useful life. The new truck will cost $44,900. Cost savings with this truck are expected to be $13,700 for the first two years, $9,500 for the following two years, and $5,400 for the last three years of the truck's useful life. What is the payback period for this project? (Round answer to 2 decimal places, e.g. 52.75.) Payback period years What is the discounted payback period for this project with a discount rate of 10 percent? (Round answer to 2 decimal places, e.g. 52.75.) Discounted payback period years

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 17EA: Gardner Denver Company is considering the purchase of a new piece of factory equipment that will...

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