Question
TB Problem Qu. 12-135 (Algo) Ramson Corporation is considering... Ramson Corporation is considering purchasing a machine that would cost $609,580 and have a useful
TB Problem Qu. 12-135 (Algo) Ramson Corporation is considering... Ramson Corporation is considering purchasing a machine that would cost $609,580 and have a useful life of 9 years. The machine would reduce cash operating costs by $105,100 per year. The machine would have a salvage value of $107,340 at the end of the project. (Ignore income taxes.) Required: a. Compute the payback period for the machine. (Round your answer to 2 decimal places.) b. Compute the simple rate of return for the machine. (Round your Intermediate calculations to nearest whole dollar and your final answer to 2 decimal places.) a. Payback period b. Simple rate of return years %
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