A Company Wishes to Buy New Equipment for $9,000

question 111

Multiple Choice

A company wishes to buy new equipment for $9,000.The equipment is expected to generate an additional $2,800 in cash inflows for six years.All cash flows occur at year-end.A bank will make a $9,000 loan to the company at a 10% interest rate so that the company can purchase the equipment.Use the table below to determine break-even time for this equipment:

• A)Break-even time is between two and three years.
• B)Break-even time is between three and four years.
• C)Break-even time is between four and five years.
• D)Break-even time is between five and six years.
• E)This project will never break-even.

---

Definitions:

Social Relationships

The connections and interactions between individuals or groups, ranging from casual acquaintances to close familial bonds, influencing behavior and social structure.

Temperament Dimensions

Characteristics or traits that describe individual differences in emotional reactivity and self-regulation from a very young age.

Reflective of Nature

Demonstrating characteristics or qualities that are similar to or representative of the natural world.

Behavioral Effects

Describes the outcomes or changes in human or animal behavior resulting from various stimuli or interventions.