Crane Unlimited is considering purchasing an additional delivery truck that will have a seven-year useful life. The new truck will cost $33,000. Cost savings with this truck are expected to be $11,000 for the first two years, $7,000 for the following two years, and $4,000 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 12 percent? (Round intermediate calculations to 5 decimal places, e.g. 0.42355. Round answer to 2 decimal places, e.g. 52.75.) Discounted payback period years

Crane Unlimited is considering purchasing an additional delivery truck that will have a seven-year useful life. The new truck will cost $33,000. Cost savings with this truck are expected to be $11,000 for the first two years, $7,000 for the following two years, and $4,000 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 12 percent? (Round intermediate calculations to 5 decimal places, e.g. 0.42355. Round answer to 2 decimal places, e.g. 52.75.) Discounted payback period years

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5EA: If a garden center is considering the purchase of a new tractor with an initial investment cost of...

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