Analyze nestle csr initiative plan focuses on society issues
This is a CSR project, and choose to nestle as our company Note: Please give answer on mentioned words (must add intext citation) and required
Assignment ID: FG132586273
Colchester Company is considering purchasing a new piece of equipment. Relevant information concerning the equipment follows: (Ignore income taxes.)
Purchase cost$180,000
Annual cost savings that will be provided by the equipment$37,500
Life of the equipment 12 years
Required:
Question 1: Compute the payback period for the equipment.
Question 2: Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment’s useful life, assuming $0 salvage value.