The managerial accountant at Reverse Manufacturing needs to evaluate two machines and use the payback period.The cash inflows per year are $120,000.
Required
Use the payback Method to compute the useful life for Machine 1 and Machine 2.What is the problem with the payback period method if the cutoff point is 3 years? Show all work.
Definitions:
Unconditioned Response
A spontaneous and automatic response triggered by a stimulus, occurring without the necessity of learning or conditioning beforehand.
White Uniform
Clothing traditionally worn by medical and healthcare professionals to denote cleanliness and professionalism.
Rapid Acquisition
The quick initial stage of learning or gaining information.
CR
Conditioned Response; a learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.
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