Bark Company Is Considering Buying a Machine for $120,000 with an Estimated

question 15

Multiple Choice

Bark Company is considering buying a machine for $120,000 with an estimated life of ten years and no salvage value.The straight-line method of depreciation will be used.The machine is expected to generate net income of $8,000 each year.The cash payback period on this investment is

• A)15 years.
• B)10 years.
• C)6 years.
• D)3 years.

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Definitions:

Hydrogen

The lightest and most abundant chemical element in the universe, consisting of just one proton and often one electron.

Potassium Hydroxide

A strong base used in industry and research that is highly reactive with acids and capable of causing severe burns.

Base

In chemistry, a base is a substance that can accept protons (H+) from acids or donate a pair of valence electrons to form a bond, and it often has a high pH when dissolved in water.

Dissociates

Refers to the process by which molecules or ionic compounds split into smaller particles, often ions, in solution.