A Company with $800,000 in Operating Assets Is Considering the Purchase

question 35

Multiple Choice

A company with $800,000 in operating assets is considering the purchase of a machine that costs $75,000 and which is expected to reduce operating costs by $20,000 each year.The payback period for this machine in years is closest to:

• A) 0.27 years.
• B) 3.75 years.
• C) 10.7 years.
• D) 40 years.

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Definitions:

Verdict

The formal decision or finding made by a jury or judge on the matters submitted to them in a trial.

Weight of the Evidence

The weight of the evidence refers to the balance and credibility of the evidence presented in legal proceedings, used to determine the outcome.

U.S. Supreme Court

The highest federal court in the United States, consisting of nine Justices and holding final appellate jurisdiction over federal and state court cases.

Appealing

The process of applying to a higher court for a reversal of the decision of a lower court.