Brewer company is considering purchasing a machine that

Reference no: EM13592331

Brewer Company is considering purchasing a machine that would cost $464,610 and have a useful life of 7 years. The machine would reduce cash operating costs by $91,100 per year. The machine would have a salvage value of $107,200 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: EM13592331

Questions Cloud

Prepare a statement of financial condition for mr holz as : a personal statement of financial condition dated december 31 2008 is to be prepared for wilhelm holz. he provides the

Compute the net present value of the project negative : dunay corporation is considering investing 905000 in a project. the life of the project would be 9 years. the project

Nasa has requested that campbell soup make special ready to : nasa has requested that campbell soup make special ready to eat meals for their international space station and mission

Two men on the same side of a tall building notice the : two men on the same side of a tall building notice the angle of elevation to the top of the building to be 30 deg and

Brewer company is considering purchasing a machine that : brewer company is considering purchasing a machine that would cost 464610 and have a useful life of 7 years. the

He then turns 90deg and walks 34 miles in the direction n : a man wandering in the desert walks 2.6 miles in the direction s 35degw. he then turns 90deg and walks 3.4 miles in

Cardwell corporation manufactures a variety of products : cardwell corporation manufactures a variety of products. last year the companys variable costing net operating income

Odaniel company had beginning inventory on may 1 of 12000 : odaniel company had beginning inventory on may 1 of 12000. during the month the company made purchases of 40000 but

In december one of the processing departments at : in december one of the processing departments at pomainville corporation had beginning work in process inventory of

User Account

All Pages