Sloman company is considering purchasing a machine that, Ask an Expert

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Sloman Company is considering purchasing a machine that would cost $436,800 and have a useful life of 5 years. The machine would reduce cash operating costs by $132,364 per year. The machine would have no salvage value.

Required:
a. Compute the payback period for the machine.

b. Compute the simple rate of return for the machine.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9976242

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