Phoxco Is Considering Automating Its Production Line

question 13

Multiple Choice

Phoxco is considering automating its production line. It will cost $40,000 to acquire the necessary equipment. The annual cost savings are expected to be $8,000 per year for 14 years.. The firm requires a 20% return.
Ignoring income taxes, what is the payback period?

• A) 3 years
• B) 4.2 years
• C) 5 years
• D) 6 years

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Definitions:

Structured Set

A carefully planned and organized collection of elements or instructions designed to achieve a specific educational or therapeutic outcome.

Learning Outcomes

Statements that specify what learners will know or be able to do as a result of a learning activity, often used to assess the effectiveness of educational programs.

Curriculum

A structured set of educational and instructional materials and guidelines designed to achieve specific learning objectives.

Scope and Sequence

An outline of the topics and order in which they will be taught in a curriculum over a specific period of time.