A company is considering acquiring an equipment at a cost of 960000. Expected life of...

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Accounting

A company is considering acquiring an equipment at a cost of 960000.

Expected life of the equipment is 8 years without residual value.

Expected annual cashflow is 168000 and the minimum desirable rate of return for the NPV analysis is 10%.

Required.

Average rate of return assuming the annual earnings are equal.

Cash payback period

The NPV

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