(Ignore income taxes in this problem. )Brewer Company is considering purchasing a machine that would cost $537,600 and have a useful life of 9 years.The machine would reduce cash operating costs by $82,708 per year.The machine would have a salvage value of $107,520 at the end of the project.
Required:
a.Compute the payback period for the machine.
b.Compute the simple rate of return for the machine.

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The Answer of (Ignore income taxes in this problem. )Brewer Company is considering purchasing a machine that would cost $537,600 and have a useful life of 9 years.The machine would reduce cash operating costs by $82,708 per year.The machine would have a salvage value of $107,520 at the end of the project.
Required:
a.Compute the payback period for the machine.
b.Compute the simple rate of return for the machine.

(Ignore Income Taxes in This Problem