Giraldi Company Has Identified That the Cost of a New

question 37

Multiple Choice

Giraldi Company has identified that the cost of a new computer will be $48,000, but with the use of the new computer, net income will increase by $5,000 a year. If depreciation expense is $3,000 a year, the cash payback period is:

• A) 24.0 years.
• B) 16.0 years.
• C) 9.6 years.
• D) 6.0 years.

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Definitions:

Rapid-Acting Insulin

A type of insulin that starts to lower blood sugar within a few minutes after injection and has a short duration of action.

Humulin N

A brand of insulin used to control blood sugar levels in people with diabetes.

Humulin R

A brand of insulin used to control high blood sugar in people with diabetes.

Rapid-Acting Insulin

A type of insulin that starts to work shortly after injection and is used to control blood sugar levels during meals.