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

question 121

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?

---

Definitions:

Shakers

A religious sect known for its communal living, celibacy, and simple lifestyle, named after their practice of ecstatic dancing as part of worship.

Mormons

Members of The Church of Jesus Christ of Latter-day Saints, a religious group founded in the early 19th century by Joseph Smith, known for its unique scriptures including the Book of Mormon.

Oneidas

A member of a Native American people originally from upstate New York, known for their role in American history and as part of the Iroquois Confederacy.

Defense Of Marriage Act

A U.S. federal law enacted in 1996 that, prior to being ruled unconstitutional, defined marriage for federal purposes as the union between one man and one woman, and allowed states to refuse to recognize same-sex marriages granted under the laws of other states.