Simone Corporation Bought a New Machine Which Cost $87,500, Has

question 144

Short Answer

Simone Corporation bought a new machine which cost $87,500, 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:

Statute Of Frauds

A legal requirement that certain contracts must be in writing to be enforceable.

Enforceable

Capable of being imposed or executed under law or legal authority.

In Writing

A contractual or legal requirement that stipulates information, agreements, or official statements must be documented in physical or electronic text form.

Limited Liability Partnership

A partnership where some or all partners have limited liabilities, protecting them from the debts of the partnership beyond their investment.