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The management of abc co is considering the purchase of

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The management of ABC Co. is considering the purchase of $50,000 machine that would reduce operating costs by $10,000 per year. At the end of the machine's 10 year useful life, it would have no scrap value. The tax rate is 30%.

  1. Determine the payback period?
  2. Determine the simple rate of return.

Reference no: EM13593711

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