Use the Following Information for Questions

question 56

Multiple Choice

Use the following information for questions
A company projects an increase in net income of $40,000 each year for the next five years if it invests $500,000 in new equipment.The equipment has a five-year life and an estimated salvage value of $50,000.The company uses the straight-line method of depreciation.
-What is the cash payback period?

• A)12.5 years
• B)5.56 years
• C)3.85 years
• D)3.57 years

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Definitions:

Adoptive Parent

An individual who has become a parent through the legal process of adopting one or more children.

Dopamine Levels

The concentration of dopamine, a neurotransmitter associated with the brain's reward and pleasure centers, motor function, and regulation of mood.

Axon

The neuron extension that passes messages through its branches to other neurons or to muscles or glands.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.