Ramson Corporation is considering purchasing a machine that would cost $285,120 and have a useful life of 5 years. The m

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Ramson Corporation Is Considering Purchasing A Machine That Would Cost 285 120 And Have A Useful Life Of 5 Years The M 1 (19.65 KiB) Viewed 10 times

Ramson Corporation is considering purchasing a machine that would cost $285,120 and have a useful life of 5 years. The machine would reduce cash operating costs by $89,100 per year. The machine would have a salvage value of $107,180 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.) b. Compute the simple rate of return for the machine. (Round your intermediate calculations to nearest whole dollar and your final answer to 2 decimal places.) a. Payback period b. Simple rate of return 3.20 years %