In January, Wilson Company Purchased a New Machine for $80,000

question 81

Multiple Choice

In January, Wilson Company purchased a new machine for $80,000 that has a useful life of 10 years and a terminal value of $5,000. Annual cash operating savings from the machine are $20,000. The income tax rate is 40%. What is the after-tax payback period?

• A) 4.00 years
• B) 5.26 years
• C) 4.85 years
• D) 6.67 years

---

Definitions:

Stratum Granulosum

A layer of the epidermis found beneath the stratum corneum and above the stratum spinosum, characterized by keratinocytes that start to undergo keratinization.

Epidermis

The skin's external layer, which forms a barrier preventing water from penetrating and determines the color of our skin.

Melanin

Group of related molecules responsible for skin, hair, and eye color. Most melanins are brown to black pigments; some are yellowish or reddish.

Addison Disease

A disorder characterized by insufficient production of corticosteroid hormones by the adrenal glands, leading to fatigue, muscle weakness, and changes in skin pigmentation.