If an Asset Cost $270000 and Is Expected to Have

question 88

Multiple Choice

If an asset cost $270000 and is expected to have a $60000 salvage value at the end of its twelve-year life and generates annual net cash inflows of $40000 each year the cash payback period is

• A) 2.7 years.
• B) 8.25 years.
• C) 6.75 years.
• D) 5.25 years.

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Definitions:

Western Front

Specifically pertaining to World War I, it was the primary theater of war during the conflict, marked by a line of trenches stretching from the North Sea to the Swiss frontier with France.

Mutinies

Acts of open rebellion against the proper authorities, especially by soldiers or sailors against their commanding officers.

France

A country in Western Europe known for its rich history, cultural significance, and as a global center for art, fashion, and cuisine.

George Curzon

A British Conservative statesman who served as Viceroy of India and was influential in the foreign policy of the early 20th century, focusing on expansion and defense of the British Empire.