1. Brad Blaylock has purchased a tractor for $96,250. He expects to receive a net cash flow of $28,000 per year from the investment. What is the payback period for Jim? Round your answer to two decimal places. fill in the blank 1 years 2. Bertha Lafferty invested $370,000 in a laundromat. The facility has a 10-year life expectancy with no expected salvage value. The laundromat will produce a net cash flow of $120,000 per year. What is the accounting rate of return? Enter your answer as a whole percentage value (for example, 16% should be entered as "16" in the answer box). fill in the blank 2 % 3. Melannie Bayless has purchased a business building for $321,000. She expects to receive the following cash flows over a 10-year period: Year 1: $45,500 Year 2: $62,000 Year 3-10: $87,400 What is the payback period for Melannie? Round your answer to one decimal place.
Payback and ARR
Each of the following scenarios is independent. All cash flows are after-tax cash flows.
Required:
1. Brad Blaylock has purchased a tractor for $96,250. He expects to receive a net cash flow of $28,000 per year from the investment. What is the payback period for Jim? Round your answer to two decimal places.
fill in the blank 1 years
2. Bertha Lafferty invested $370,000 in a laundromat. The facility has a 10-year life expectancy with no expected salvage value. The laundromat will produce a net cash flow of $120,000 per year. What is the accounting
fill in the blank 2 %
3. Melannie Bayless has purchased a business building for $321,000. She expects to receive the following cash flows over a 10-year period:
| Year 1: $45,500 |
| Year 2: $62,000 |
| Year 3-10: $87,400 |
What is the payback period for Melannie? Round your answer to one decimal place.
fill in the blank 3 years
What is the accounting rate of return? Enter your answer as a whole percentage value (for example, 16% should be entered as "16" in the answer box).
fill in the blank 4 %
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