Tinker Toy Corporation Bought a New Machine, Which Cost $90,000

question 168

Short Answer

Tinker Toy Corporation bought a new machine, which cost $90,000, has a useful life of 10 years, and will generate annual cash inflows of $25,000. The residual value of the machine is $5,500. What is the payback period?

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Definitions:

Classic Western Movies

Classic Western movies are a genre of films set primarily in the late 19th century American West, featuring themes of frontier justice, cowboys, and the clash between wilderness and civilization.

Hierarchy of Needs

Maslow's theory that human motivations are ranked in a hierarchical order from physiological needs to self-actualization.

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Conflicts

Situations or internal states in which incompatible goals, needs, or desires lead to psychological tension and struggle.