Excellent Manufacturing Company Is Considering the Following Investment Proposal The Firm Uses the Straight-Line Method of Depreciation with No

question 16

Multiple Choice

Excellent Manufacturing Company is considering the following investment proposal: $$\begin{array} { l l } \text { Original investment } & \$ 15,000 \\\text { Operations (per year for four years) : } & \\\text { Cash receipts } &\$ 10,550 \\\text { Cash expenditures } &\$ 6,200 \\\text { Salvage value of equipment after three years } &\$ 1,200 \\\text { Discount rate } &9 \% \end{array}$$ The firm uses the straight-line method of depreciation with no mid-year convention. What is the payback period in years approximated to two decimal points, assuming no taxes are paid?

• A)2.38 years
• B)1.82 years
• C)3.45 years
• D)3.21 years

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Definitions:

Autism Spectrum

A range of developmental disorders characterized by challenges with social skills, repetitive behaviors, speech, and nonverbal communication.

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The set of standards or norms that society deems acceptable for its members' behaviors and attitudes.

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Actions, thoughts, or feelings that are considered outside the statistical norm or that deviate significantly from societal expectations and can affect functionality.

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