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Anselmo Corp. is considering the purchase of a new machine for $76,000. The machine would generate an annual cash flow of $23,214 for five years. At the end of five years, the machine would have no salvage value. The company's cost of capital is 12 percent. The company uses straight-line depreciation with no mid-year convention. What is the payback period in years for the machine approximated to two decimal points, assuming no taxes are paid?
Psychological Test
An instrument designed to measure unobserved constructs such as a person's cognitive abilities, behaviors, or personality traits.
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The process of making something conform to a standard in order to ensure consistency and comparability across different instances or measurements.
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A type of personality test designed to let a person respond to ambiguous stimuli, revealing hidden emotions and internal conflicts.
Unconscious Feelings
Emotions and desires that reside in the unconscious mind, influencing behavior without one's awareness.
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