Calculate the Payback Period If a New Printer Is Purchased

question 51

Multiple Choice

Calculate the payback period if a new printer is purchased at a cost of $12,000, with monthly savings of $333.33 due to higher quality print and fewer reprints, etc. The annual savings are estimated at $4,000.

• A) 2 years
• B) 2.5 years
• C) 3 years
• D) 3.5 years

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Definitions:

Margin Call

A demand by a broker that an investor deposit further cash or securities to cover possible losses.

Initial Margin

The minimum amount of equity required to enter into a position as security for performance, used in futures and margin trading.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account.

Margin Call

A demand by a broker that an investor deposit additional money or securities to cover possible losses.