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Pictured Rocks Mfg . is considering purchasing a tool that would cost $ 2 8 5 , 1 2 0 and have a useful life

Pictured Rocks Mfg. is considering purchasing a tool that would cost $285,120 and have a useful life of 5 years. The tool would reduce cash operating costs by $89,100 per year. The tool would have a salvage value of $107,180 at the end of the places.
Compute the payback period (in years) for the tool.
Compute the simple rate of return for the tool

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