Nance Company Is Considering Buying a Machine for $90,000 with an Estimated

question 41

Multiple Choice

Nance Company is considering buying a machine for $90,000 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 $6,000 each year. The cash payback on this investment is

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

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Definitions:

High-Speed Link

A communication connection that allows for rapid data transfer between devices or systems.

SERCOS Standard

An open standard for data exchange between drives and controls in industrial applications, facilitating real-time communication.

Field Devices

Equipment such as sensors, valves, actuators, and transmitters located in the physical area being monitored or controlled.

Fieldbus Communication System

A network system for industrial control systems used to connect and communicate with field devices like sensors and actuators.