The Cost of a New Machine Is $250,000

question 43

Multiple Choice

The cost of a new machine is $250,000.The machine has a five-year life and no salvage value.If the cash flow each year is equal to 25% of the cost of the machine,calculate the payback period for the project:

• A)2.0 years
• B)2.5 years
• C)3.0 years
• D)4.0 years

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Definitions:

Drive-Reduction Theory

A psychological theory that posits that motivation arises from the desire to reduce an uncomfortable state of tension caused by unmet needs.

Homeostasis

The method through which living beings maintain a steady and unchanging state by controlling their internal surroundings.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, driving individuals to pursue and achieve objectives.

Aroused, Motivated State

A condition of being mentally and physically activated or energized towards achieving a specific goal.