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1. (Ignore income taxes in this problem.) Gocke Company is considering purchasing a machine that...

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Accounting

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1. (Ignore income taxes in this problem.) Gocke Company is considering purchasing a machine that would cost $478,800 and have a useful life of 5 years. The machine would reduce cash operating costs by $114,000 per year. The machine would have no salvage value. Required: a. Compute the payback period for the machine. (10 points) b. Compute the simple rate of return for the machine. (10 points)

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