A Company with $810,000 in Operating Assets Is Considering the Purchase

question 155

Multiple Choice

A company with $810,000 in operating assets is considering the purchase of a machine that costs $86,000 and which is expected to reduce operating costs by $18,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to (Ignore income taxes.) : (Round your answer to 1 decimal place.)

• A) 4.8 years
• B) 9.4 years
• C) 0.21 years
• D) 45 years

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Definitions:

Working Conditions

The environmental and circumstances of the workplace that affect the physical and mental well-being of employees.

Appropriate Compensation

Fair and suitable remuneration or other forms of reward given to employees or individuals for their work or injury.

Health Care Spending

The total expenditure on health services and products within a country, including personal health care and public health services.

Total Hip Replacement

A surgical procedure in which the damaged hip joint is replaced with prosthetic components, aiming to relieve pain and restore mobility.