TB Problem 8-139 (Ignore income taxes in this problem.) Alesi Corporation...   (Ignore income taxes in this problem.) Alesi Corporation is considering purchasing a machine that would cost $320,430 and have a useful life of 5 years. The machine would reduce cash operating costs by $97,100 per year. The machine would have a salvage value of $107,260 at the end of the project.  (Assume the company uses straight-line depreciation.)   Required: a. Compute the payback period for the machine. (Round your answer to 2 decimal places.)     b. Compute the simple rate of return for the machine. (Round your intermediate answers to nearest whole dollar and your final answer to 2 decimal places.)

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.