The New Watch Times Is Considering a New Printing Press

question 81

Multiple Choice

The New Watch Times is considering a new printing press to increase its productive capacity.If the cost of the press is $500,000 and the relevant cash flows from the project are $75,000 per year over the next ten years,what is the payback period?

• A) 6.00 years
• B) 6.50 years
• C) 7.00 years
• D) 6.67 years
• E) 7.50 years

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Definitions:

Reflex

A predictable automatic response to stimuli.

Motor response

Refers to the body's reaction to stimuli, involving nerves and muscles.

Ascending track

Nervous system pathways that carry sensory information from the body up to the brain.