Acct 102 help


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Acct 102 help 1 answer below ยป BSU Inc. wants to purchase a new machine for $41,200, excluding $1,400 of installation costs. The old machine was bought five years ago and
had an expected economic life of 10 years without salvage value. This old machine now has a book value of $2,200, and BSU Inc. expects to sell it for that
amount. The new machine would decrease operating costs by $9,000 each year of its economic life. The straight-line depreciation method would be used for the
new machine, for a six-year period with no salvage value. (Using the Present value of an annuity of 1 table) Determine the cash payback period. Dec 08 2013 02:18 PM

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