Use the Following Information for Questions

question 47

Multiple Choice

Use the following information for questions
A company is considering purchasing factory equipment that costs $480,000 and is estimated to have no salvage value at the end of its 8-year useful life. If the equipment is purchased, annual revenues are expected to be $135,000 and annual operating expenses exclusive of depreciation expense are expected to be $39,000. The straight-line method of depreciation would be used.
-The cash payback period on the equipment is

• A) 13.3 years.
• B) 8.0 years.
• C) 5.0 years.
• D) 2.5 years.

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Definitions:

Postoperative

Pertaining to the period after a surgical procedure, involving recovery and monitoring for any complications.

Incentive Spirometer

A medical device used to help patients improve the functioning of their lungs, particularly after surgery or during treatment for respiratory conditions.

Reverse Trendelenburg

A bed positioning technique where the head of the bed is raised and the foot of the bed is lowered to improve patient comfort or for medical reasons.

Hand Hygiene

The practice of washing or sanitizing the hands to remove dirt, germs, and harmful microorganisms to prevent disease.