Use the Information Below to Answer the Following Questions

question 6

Multiple Choice

Use the information below to answer the following questions.
Y3 Ltd is expanding its production of binoculars. The plant is expected to cost $750,000 and have a life of 5 years and a nil residual value. It will be ready for operation on 31 December 2014. The following income statement figures for the new binoculars are forecast: Depreciation has been calculated on a straight-line basis. You should assume that all cash flows occur at the end of the year in which they arise. The company's cost of capital is 10%. Ignore taxation.
-Refer to the table above. The payback period is:

• A) between years 3 and 4.
• B) between years 1 and 2.
• C) between years 2 and 3.
• D) between years 4 and 5.

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Definitions:

Other-Race Effect

A phenomenon where individuals find it easier to recognize faces of their own race compared to faces from other races.

Implicit Prejudice

Unconscious biases or attitudes towards certain groups of people, which can influence behavior without the individual being aware of them.

Social Trap

Situations in which a group or individual acts in a way that leads to mutual harm, often as a result of conflicting short-term interests and long-term benefits.

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Devices used to regulate the temperature within a home or building by controlling heating and cooling systems.