The State University Of New Jersey Operations And Supply Chain Management Assignment Help - Brewer Company
Question - Brewer Company is considering purchasing a machine that would cost $464,610 and have a useful life of 7 years. The machine would reduce cash operating costs by $91,100 per year. The machine would have a salvage value of $107,200 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 % ?
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