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badd99 badd99
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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
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Tram N.Tram N.
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A year ago
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badd99 Author
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A year ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
brina10
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Yesterday
Helped a lot
lubennick
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2 hours ago
Thanks
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