Martin Company is considering the purchase of a new piece of equipment (1).docx

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Martin Company is considering the purchase of a new piece of equipment. Relevant information concerning the equipment follows: (Ignore income taxes.) Use straight-line depreciation based on the equipment\'s useful life. Compute the simple rate of return on the equipment. (Round your answer to 1 decimal place. Omit the \"%\" sign in your response.) Solution Use straight-line depreciation based on the equipment\'s useful life. Compute the simple rate of return on the equipment. (Round your answer to 1 decimal place. Omit the \"%\" sign in your response.) .

Martin Company is considering the purchase of a new piece of equipment. Relevant information
concerning the equipment follows: (Ignore income taxes.)
Use straight-line depreciation based on the equipment's useful life. Compute the simple rate of
return on the equipment. (Round your answer to 1 decimal place. Omit the "%" sign in
your response.)
Martin Company is considering the purchase of a new piece of equipment. Relevant information
concerning the equipment follows: (Ignore income taxes.)
Solution
Use straight-line depreciation based on the equipment's useful life. Compute the simple rate of
return on the equipment. (Round your answer to 1 decimal place. Omit the "%" sign in
your response.)
1a. Compute the payback period for the equipment. (Round your answer to 1 decimal place.)

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