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:

Token Economy

A behavior modification system that utilizes tokens as reinforcement for desired behaviors, which can be exchanged for privileges or treats.

Schizophrenia

A mental disorder characterized by distorted thinking, perceptions, emotions, language, sense of self, and behavior.

Token Economies

A behavior modification technique where desirable behaviors are reinforced with tokens, which can be exchanged for various rewards.

Psychotic Symptoms

Manifestations such as hallucinations or delusions that indicate a loss of contact with reality, often observed in conditions like schizophrenia.