A Company Is Planning to Purchase a Machine That Will

question 114

Multiple Choice

A company is planning to purchase a machine that will cost $24,000,have a six-year life,and be depreciated over a three-year period with no salvage value.The company expects to sell the machine's output of 3,000 units evenly throughout each year.A projected income statement for each year of the asset's life appears below.What is the payback period for this machine?

• A)24 years.
• B)12 years.
• C)6 years.
• D)4 years.
• E)1 year.

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Definitions:

Method

A function associated with an object or class in object-oriented programming, used to perform specific actions or calculations.

Local Variables

Variables that are declared inside a function or block of code and are only accessible within that function or block.

Method Main

The entry point for execution in many programming languages, particularly Java, where the main method is where the program starts running.

Accompanying Figure

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