An Initial Investment of $180,000 Is Expected to Generate $85,000

question 163

Multiple Choice

An initial investment of $180,000 is expected to generate $85,000 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) 3.0 years
• B) 2.12 years
• C) 0.88 years
• D) None of these answers is correct.

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Definitions:

Promotional Message

A communication sent with the intent of promoting a product, service, or event to potential customers.

Office of Customer Affairs

A department or organization that handles relations with customers, addressing their concerns, queries, and feedback.

Promotional Message

A communication designed to inform, persuade, or remind targets about products, services, or brands.

Selling Points

Key features or benefits of a product or service that make it attractive to potential buyers.