A Company Is Considering Purchasing a Machine for $21,000

question 32

Multiple Choice

A company is considering purchasing a machine for $21,000. The machine will generate an after-tax net income of $2,000 per year. Annual depreciation expense would be $1,500. What is the payback period for the new machine?

• A) 4 years.
• B) 6 years.
• C) 10.5 years.
• D) 14 years.
• E) 42 years.

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Definitions:

Satisfaction

The feeling of pleasure or fulfillment that comes from meeting a need, desire, or expectation.

Biological Theory

An explanation for behaviors and traits based on genetic, neurological, and physical factors, highlighting the influence of biology on human actions.

Sexual Orientation

An enduring pattern of emotional, romantic, or sexual attractions toward people of the same sex, opposite sex, both sexes, or neither, reflecting a core aspect of individual identity.

Heterosexual Orientations

A sexual orientation characterized by an enduring sexual attraction to individuals of the opposite sex.