A Company Is Considering Purchasing a Machine That Costs $400,000

question 80

Multiple Choice

A company is considering purchasing a machine that costs $400,000 and is estimated to have no salvage value at the end of its 8-year useful life. If the machine is purchased, annual revenues are expected to be $100,000 and annual operating expenses exclusive of depreciation expense are expected to be $25,000. The straight-line method of depreciation would be used. The cash payback period on the machine is

• A)8.0 years.
• B)7.5 years.
• C)6.5 years.
• D)3.2 years.

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Definitions:

Mental Illness

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Mental Illness

A condition that affects a person's thinking, feeling, behavior, or mood, often significantly impairing personal functioning.

Homeless

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Indigenous People

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