Compute the payback period for the machine

Reference no: EM13972904

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.)

Compute the payback period for the machine.
Compute the simple rate of return for the machine.

Reference no: EM13972904

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