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:

Substantial Autonomy

Describes a significant level of independence or self-direction that an individual or unit has to make decisions.

Communities of Practice

Groups of people who share a concern, a set of problems, or a passion about a topic, and who deepen their knowledge and expertise in this area by interacting on an ongoing basis.

Virtual Teams

Groups of individuals who work together from different geographical locations and rely on communication technologies to collaborate.

Cross-Functional

Cross-functional refers to a situation or project involving members from different departments or areas of expertise within an organization working together.