Nelson Corp

question 88

Multiple Choice

Nelson Corp.is considering the purchase of a new piece of equipment.The cost savings from the equipment would result in an annual increase in cash flow of $100,000.The equipment will have an initial cost of $400,000 and have a 5-year life.If the salvage value of the equipment is estimated to be $75,000,what is the payback period? Ignore income taxes.

• A)3.25 years
• B)4.00 years
• C)4.75 years
• D)7.00 years

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Definitions:

Sincere Trust

A genuine and heartfelt confidence in the reliability, truth, ability, or strength of someone or something.

Appropriate Information

Data or knowledge that is suitable and relevant to the context or situation at hand, aiding in decision-making or problem-solving.

Self-disclosure

The act of revealing personal information, thoughts, or feelings to others, fostering intimacy or trust in relationships.

Johari Window

A model that is used to help people better understand their relationship with self and others through the concepts of known, unknown, hidden, and blind self.