Business, 27.06.2020 21:01 rleiphart1

Alesi Corporation is considering purchasing a machine that would cost $387,430 and have a useful life of 6 years. The machine would reduce cash operating costs by $90,100 per year. The machine would have a salvage value of $107,190 at the end of the project. (Assume the company uses straight-line depreciation.) 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 intermediate answers to nearest whole dollar and your final answer to 2 decimal places.)

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