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a,b? 1, (Ignore income taxes in this problem.) Brewer Company is considering purchasing a machine that would cost $537,600 and have a useful life of

a,b?
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1, (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. ( 2 points) Compute the payback period for the machine. b. ( 2 points) Compute the simple rate of return for the machine. Note that you need to consider the depreciation on the machine

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