Problem
A cannery is considering installing an automatic case-sealing machine to replace current hand methods. If they purchase the machine for $3800 in June, at the beginning of the canning season, they will save $400 per month for the 4 months each year that the plant is in operation. Maintenance costs of the case-sealing machine are expected to be negligible. The case-sealing machine is expected to be useful for five annual canning seasons and then will have no salvage value. What is the payback period? What is the nominal annual rate of return?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.