Brewer company is considering purchasing a machine that

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Reference no: EM13582080

Brewer Company is considering purchasing a machine that would cost $283,850 and have a useful life of 5 years. The machine would reduce cash operating costs by $81,100 per year. The machine would have a salvage value of $107,100 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: EM13582080

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