Purvell Corporation Has Just Acquired a New Machine with the Following

question 38

Multiple Choice

Purvell Corporation has just acquired a new machine with the following characteristics (Ignore income taxes.) : The company uses straight-line depreciation and a $5,000 salvage value. Assume cash flows occur uniformly throughout a year except for the initial investment and the salvage at the end of the project.
The payback period is closest to:

• A) 3.33 years
• B) 3.0 years
• C) 8.0 years
• D) 2.9 years

---

Definitions:

Sternal Angle

Also known as the Angle of Louis, it is the anatomical landmark formed by the junction between the manubrium and the body of the sternum, important in thoracic surgery and medicine.

Heart Failure

A chronic condition where the heart muscle is unable to pump blood as well as it should, leading to symptoms such as shortness of breath and fluid build-up.

Percussion of Heart

A diagnostic procedure where the chest is tapped lightly to determine the size and borders of the heart by the sounds produced.

Cardiac Borders

The edges of the heart as perceived through examination or imaging techniques, important for assessing heart size and position.