If an Asset Costs $16,000, Has an Expected Useful Life

question 26

Multiple Choice

If an asset costs $16,000, has an expected useful life of 8 years, is expected to have a $2,000 salvage value and generates net annual cash inflows of $2,000 a year, the cash payback period is

• A)8 years.
• B)7 years.
• C)6 years.
• D)5 years.

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Definitions:

Concrete Operational Stage

In Piaget’s theory, the stage of cognitive development (from about 7 to 11 years of age) during which children gain the mental operations that enable them to think logically about concrete events.

Egocentrism

The incapacity to distinguish between one's own viewpoint and that of another person.

Higher Levels

Refers to advanced stages or degrees of development, understanding, or achievement.

Lev Vygotsky

A psychologist best known for his theories on cognitive development, particularly the concept of the zone of proximal development and the importance of social interaction in learning.