Jordan Company Is Considering the Purchase of a Machine with the Following

question 101

Multiple Choice

Jordan Company is considering the purchase of a machine with the following data: $$\begin{array} { l r } \text { Initial cost } & \$ 150,000 \\\text { One-time training cost } & 12,000 \\\text { Annual maintenance costs } & 15,000 \\\text { Annual cost savings } & 75,000 \\\text { Salvage value } & 20,000\end{array}$$ The cash payback period is

• A)2.70 years.
• B)2.50 years.
• C)2.37 years.
• D)2.17 years.

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