Brewer company is considering purchasing a machine that

Assignment Help Accounting Basics

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

Questions Cloud

On january 1 a company issues bonds dated january 1 with a : on january 1 a company issues bonds dated january 1 with a par value of 400000. the bonds mature in 5 years. the

Assume that the blood from both patients follow casson : blood from two different patients is to be tested by having it glow through a long straight tube of length 10 cm and

Management is considering purchasing an asset for 42000 : management is considering purchasing an asset for 42000 that would have a useful life of 6 years and no salvage value.

The financial statements of prosperous company appear below : the financial statements of prosperous company appear below. all are in thousand rupiahs. you are also provided with

Brewer company is considering purchasing a machine that : brewer company is considering purchasing a machine that would cost 451260 and have a useful life of 6 years. the

Iu2019m looking for startup dollar figures in establishing : iu2019m looking for startup dollar figures in establishing a used car dealership i.e. initial payment annual payment

An analysis that explains any differences between the : 1. the maturity date of a note receivableis the day the note is due to be repaid. is the day the note was signed. is

In each of the following cases indicate who is responsible : in each of the following cases indicate who is responsible for reporting the income.a. dr. a instructed the hospital

Briefly describe what you would have done differently in : depreciation computations change in estimate. aussie imports purchased a specialized piece of machinery for 50000 on

User Account

All Pages