How compute the payback period for the machine

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Reference no: EM132594337

Hady Corporation is considering purchasing a machine that would cost $688,800 and have a useful life of 7 years. The machine would reduce cash operating costs by $118,759 per year. The machine would have no salvage value. (Ignore income taxes.)

Required:

Question a. Compute the payback period for the machine.

Question b. Compute the simple rate of return for the machine.

Reference no: EM132594337

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