The Cost of a New Machine Is $250,000

question 51

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 percent 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:

Peer Popularity

the degree to which an individual is liked or accepted by their peer group.

Causal Impact

entails the effect that one variable has on another, establishing a cause-and-effect relationship between the two.

Observable Evidence

Information or data that can be perceived or noticed using the senses or scientific instruments.

Scientific Attitude

An approach to understanding the world that involves skepticism, empirical evidence, and the search for knowledge.