Payback period for the new hoist

Reference no: EM13142194

Carleton Service Center just purchased an automobile hoist for $14,947. The hoist has a 5-year life and an estimated salvage value of $1,410. Installation costs were $2,830, and freight charges were $868. Carleton uses straight-line depreciation.

The new hoist will be used to replace mufflers and tires on automobiles. Carleton estimates that the new hoist will enable his mechanics to replace 4 extra mufflers per week. Each muffler sells for $78 installed. The cost of a muffler is $40, and the labor cost to install a muffler is $12.

Compute the payback period for the new hoist.

Compute the annual rate of return for the new hoist.

Reference no: EM13142194

Questions Cloud

Find minimum exam score needed for applicants admission : Scores are normally distributed with an average of 1500 and a standard deviation of 150 The minimum exam score necessary for applicants to be further considered for admission is?

What is the partial pressure of the dry gas : A sample of gas is collected over water at a temperature of 35.0?C when the barometric pressure reading is 625 torr. What is the partial pressure of the dry gas, given PH2O = 42.2 torr?

What is the investment in equity method : At the purchase date, the excess of Wallace's cost over its proportionate share of Goldman's book value was assigned to goodwill. On December 31, 2010, what is the Investment in Goldman Company balance (equity method) in Wallace's financial record..

Find the current price is higher than equilibrium price : Owners of Sizzling Foods can earn a 14% rate of return on that land it they leased it others as a parking lot and while the last nurse hired treated 1,000 extra patients in a year. If doctors make $40,000 a year, what do nurses make?

Payback period for the new hoist : Carleton Service Center just purchased an automobile hoist for $14,947. The hoist has a 5-year life and an estimated salvage value of $1,410. Compute the payback period for the new hoist.

History, goal, and success of the wildlife and countryside : What is the history, goal, and success of the Wildlife and Countryside Act 1981?

What must be the mass of the sample : particular sample of pure iron requires 0.595 kJ of energy to raise its temperature from 25oC to 45oC. The specific heat of iron is 0.45 J/g oC. What must be the mass of the sample?

Estimate the mean time workers who are employed : A sample of 15 workers revealed the following number of minutes traveled. Develop a 98 percent confidence interval for the population mean. Interpret the result. Please explain how you calculate.

Organisation that you have some basic familiarity : Choose an organisation that you have some basic familiarity with. It could be the organisation you are currently working for or one you have had a lot of experience with for example.

User Account

All Pages