Sinclair Is Considering the Acquisition of New Machinery That Will

question 81

Multiple Choice

Sinclair is considering the acquisition of new machinery that will produce uniform benefits over the next eight years. The following information is available:
Annual savings in cash operating costs: $350,000
Annual depreciation expense: $250,000
If the company is subject to a 30% tax rate, what denominator should be used to compute the machinery's payback period?

• A) $70,000.
• B) $170,000.
• C) $245,000.
• D) $320,000.
• E) None of the answers is correct.

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Definitions:

Urinary Tract Infection

An infection in any part of the urinary system, including the kidneys, bladder, or urethra, usually caused by bacteria.

Drainage Bag

A bag attached to medical devices (e.g., catheters) to collect bodily fluids for disposal.

Graduated Receptacle

A container marked with units of measurement used for accurately measuring liquids or other substances.

Health Care-associated Infection

An infection acquired by patients during the course of receiving treatment for other conditions within a healthcare setting.