QUESTION 1 "Given the investment figures in Table 1.1 for implementing a new CNC machine tool, determine the payback period and the annual return on investment. The CNC is conservatively estimated to have a useful life of 15 years. Net cost of CNC = $ ROI = years" Payback period = Table 1-1 Initial One-time investment savings in ($) tooling ($) Net cost Average of CNC yearly ($) savings ($) Tax Tax Yearly credit rate depreciation (10%) (46%) of CNC ($) 130,000 35,000 ? 60,000 .1 .46 12,000