Doris CoIs Considering Purchasing a New Machine Which Will Cost $200,000

question 70

Multiple Choice

Doris Co.is considering purchasing a new machine which will cost $200,000, but which will decrease costs each year by $50,000.The useful life of the machine is 10 years.The machine would be depreciated straight-line with no residual value over its useful life at the rate of $20,000/year.The payback period is

• A)5.0 years.
• B)4.5 years.
• C)4.0 years.
• D)10.0 years.

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Definitions:

Electronic Commerce Transactions

Business dealings conducted over electronic systems such as the internet, including buying and selling goods or services and the transfer of money.

Contract Elements

Essential components required for a legally binding contract, including offer, acceptance, consideration, capacity, and legality.

Uniform Electronic Commerce Act

Legislation aimed at standardizing and facilitating electronic transactions across jurisdictions.

UECA

Stands for Uniform Electronic Commerce Act; a set of laws intended to facilitate electronic commerce by giving legal recognition to electronic records and signatures.