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EXERCISE 13-15 Payback Period and Simple Rate of Return [LO5, L06] Jamieson Enterprises is considering...

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EXERCISE 13-15 Payback Period and Simple Rate of Return [LO5, L06] Jamieson Enterprises is considering the development of a go-kart track at an estimated total cost of $680,000. The go-karts would have a $50,000 salvage value at the end of their 10-year useful life. Estimated revenues and costs on an annual basis would be as follows: $380,000 Ticket revenues. Less operating expenses: Maintenance and utilities.. Salaries.. Depreciation". Insurance Total operating expenses Operating income. *(5680,000 - $50,000) + 10 $ 71,000 130,000 63,000 43.000 307.000 $ 73,000 Required: Ignore income taxes. 1. Jamieson Enterprises will not proceed with development of the go-kart track unless the payback period is less than six years. Should they proceed

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