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Anselmo Corp

question 60

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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?

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Definitions:

Psychological Test

An instrument designed to measure unobserved constructs such as a person's cognitive abilities, behaviors, or personality traits.

Standardization

The process of making something conform to a standard in order to ensure consistency and comparability across different instances or measurements.

Projective Test

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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