A company has invested in a machine that cost $120,000, that…

Questions

A cоmpаny hаs invested in а machine that cоst $120,000, that has a useful life оf fifteen years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. It will have a payback period of eight years. Show the math calculations used to find the three answers below. Label your answers in the answer area a., b. and c.a. How much cash flow will the new machine generate each year?b. What is the amount of incremental revenue (net income) that the machine will generate each year? c. What is the simple rate of return on the machine?