An Initial Investment of $270,000 Is Expected to Generate $120,000

question 70

Multiple Choice

An initial investment of $270,000 is expected to generate $120,000 in annual cost savings over the asset's expected 3- year life. Assume straight- line depreciation and ignore income taxes. The payback period is:

• A) 2.40 years
• B) 3.00 years
• C) 0.75 years
• D) 2.25 years

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Definitions:

Mental Structures

Mental structures are the organized patterns of thought or cognition that individuals use to perceive, interpret, and understand their environment.

Accommodation

In psychology, the process of modifying existing cognitive schemas, perceptions, and understandings to integrate new information.

Analytic Approach

A technique for solving issues by dividing a complicated subject or material into more manageable pieces, facilitating a deeper comprehension of it.

Information Processing

a cognitive approach that likens the mind to a computer, focusing on how information is input, stored, and retrieved.