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sarmaz
Apr 13, 2012, 02:38 PM
If you were given increased revenues
increased expenses
salary of additional operator
supplies
depreciation
maintenance
increased net income
and the current salvage value as well as the cost of a new machine and its useful life

how would you find the payback period on the new equipment? And its simple rate of return?

paraclete
Apr 13, 2012, 07:52 PM
Cost/net income but there are other considerations such as the rate of inflation expected product life, etc