Capital budgeting
Zhang Corporation is considering investing $190,000 in equipment to produce a new product.Useful service life of the equipment is estimated to be 5 years,with zero salvage value.Straight-line depreciation is used.The company estimates that production and sale of the new product will increase net income by $65,000 a year.(Round your years and percentage answers to one decimal place. )
(a)The payback period will be ________ years.
(b)The expected rate of return on average investment will be ________.

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The Answer of Capital budgeting
Zhang Corporation is considering investing $190,000 in equipment to produce a new product.Useful service life of the equipment is estimated to be 5 years,with zero salvage value.Straight-line depreciation is used.The company estimates that production and sale of the new product will increase net income by $65,000 a year.(Round your years and percentage answers to one decimal place. )
(a)The payback period will be ________ years.
(b)The expected rate of return on average investment will be ________.

Capital Budgeting Zhang Corporation Is Considering Investing $190,000 in Equipment to Produce