An Initial Investment of $180,000 Is Expected to Generate $100,000

question 39

Multiple Choice

An initial investment of $180,000 is expected to generate $100,000 in annual cost savings over the asset's expected 3-year life.Assume straight-line depreciation and ignore income taxes.The payback period is _____.

• A)3.0 years
• B)0.88 years
• C)1.80 years
• D)none of these answers is correct

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Definitions:

Social Darwinist

A belief system that applies Darwin's theory of natural selection to society, suggesting that humans compete in a struggle for existence in which only the fittest survive.

Dawes Act

A 1887 U.S. law aimed at assimilating Native Americans into American society by distributing tribal lands to individual members.

Haymarket Affair

A violent confrontation between police and labor protesters in Chicago in 1886, which became a symbol of the struggle for workers' rights.