Brewer company is considering purchasing a machine that

Reference no: EM13581332

Brewer Company is considering purchasing a machine that would cost $451,260 and have a useful life of 6 years. The machine would reduce cash operating costs by $98,100 per year. The machine would have a salvage value of $107,270 at the end of the project. (Ignore income taxes.)
Required:

a. Compute the payback period for the machine. (Round your answer to 2 decimal places.)
Payback period years

b.Compute the simple rate of return for the machine. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Simple rate of return %

Reference no: EM13581332

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