i need the answer quickly Splish Inc. is considering modernizing its production facility by investing in new equipment and selling the old equipment. Thefollowing information has been collected on this investment:Old EquipmentNew EquipmentCost$81,520Cost$38,800Accumulated depreciation$40,400Estimated useful life8 yearsRemaining life8 yearsSalvage value in 8 years$4,600Current salvage value$10,720Annual cash operating costs$30,100Salvage value in 8 years$0Annual cash operating costs$35,300Depreciation is $10,190 per year for the old equipment. The straight-line depreciation method would be used for the new equipmentover an eight-year period with salvage value of $4,600.(a)Determine the cash payback period. (Ignore income taxes.) (Round answer to 3 decimal places, e.g. 15.275.)Cash payback periodyears

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Old Equipment New Equipment $81,520 Cost $38,800 depreciation $40,400 Estimated useful life 8 years e 8 years Salvage value in 8 years $4,600 ge value $10,720 Annual cash operating costs $30,100 in 8 years $0

Old Equipment New Equipment $81,520 Cost $38,800 depreciation $40,400 Estimated useful life 8 years e 8 years Salvage value in 8 years $4,600 ge value $10,720 Annual cash operating costs $30,100 in 8 years $0

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 3MAD

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