Top Posters
Since Sunday
6
s
3
3
d
3
s
2
c
2
G
2
y
2
t
2
2
k
2
j
2
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
badd99 badd99
wrote...
Go to Answer
Posts: 143
Rep: 0 0
A year ago

Cardinal Pharmacy has purchased a small auto for delivery of prescriptions. The auto cost $28,000 and will be usable for four years. Delivery of prescriptions (which the pharmacy has never done before) should increase revenues by at least $40,000 per year. The cost of these prescriptions will be about $30,000 per year. The pharmacy depreciates all assets by the straight-line method. (Ignore income taxes.)

Required:

a. Compute the payback period on the new auto.

b. Compute the simple rate of return of the new auto.

Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
Read 52 times
1 Reply
Replies
Answer verified by a subject expert
Tram N.Tram N.
wrote...
#1
Posts: 134
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

badd99 Author
wrote...

A year ago
Smart ... Thanks!
momochiime
wrote...

Yesterday
Thanks for your help!!
wyq2651
wrote...

2 hours ago
Good timing, thanks!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1188 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 345
  
 579
  
 272
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 405
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?